📋 Overview: Enforcing Money-Back Guarantees

A "money-back guarantee" is a powerful marketing tool that creates a binding contractual promise. When a seller advertises "100% satisfaction guaranteed," "risk-free trial," or "money-back guarantee" but then refuses to honor it, they've committed both breach of contract and potentially false advertising under California law.

What Is a Money-Back Guarantee?

A money-back guarantee is a seller's promise that if you're not satisfied with a product or service, you can return it for a full refund. These guarantees take many forms:

Common Money-Back Guarantee Language

  • "100% Money-Back Guarantee"
  • "Satisfaction Guaranteed or Your Money Back"
  • "30-Day Risk-Free Trial"
  • "Love It or Return It"
  • "No Questions Asked Returns"
  • "Try It Risk-Free for 60 Days"
  • "Full Refund If Not Completely Satisfied"
  • "Unconditional Guarantee"

When to Use This Guide

This guide helps California consumers when:

❌ Guarantee Refused

Seller advertised a money-back guarantee but refuses to honor your refund request

🚫 Hidden Conditions

Seller adds new conditions or requirements not disclosed when you purchased

🕐 Deadline Disputes

Seller claims you missed a deadline that was never clearly communicated

💰 Partial Refunds

Seller offers only partial refund despite promising "full" money back

💳 Store Credit Instead

Seller offers credit when guarantee promised actual refund

✉ Non-Response

Seller ignores your refund requests entirely

👍 Why Money-Back Guarantees Are Enforceable

In California, a money-back guarantee creates:

  • An express warranty under the Song-Beverly Act
  • A binding contract term - the guarantee is part of the deal
  • Advertising that must be truthful under Business & Professions Code 17500
  • Consumer protection under CLRA - false claims about refund rights are prohibited

⚠ Document Everything

Before requesting your refund, gather evidence of the guarantee: screenshots of ads, product packaging, website pages, email confirmations, receipts. Sellers often change their websites or claim the guarantee had limitations. Your documentation proves what was promised when you bought.

💰 Types of Money-Back Guarantees

Not all guarantees are the same. Understanding the type of guarantee you received helps frame your demand.

Unconditional Guarantees

The strongest type - no questions asked, no conditions. If you're not satisfied for any reason, you get a refund.

✅ Example Language

"100% unconditional money-back guarantee. If you're not completely satisfied for any reason, return for a full refund. No questions asked."

Satisfaction Guarantees

You must be "dissatisfied" but typically don't need to prove the product is defective - just that you're not happy with it.

✅ Example Language

"Satisfaction guaranteed or your money back. If you're not 100% satisfied with your purchase, return it within 30 days for a full refund."

Performance Guarantees

The product must meet certain performance criteria. If it doesn't perform as promised, you get a refund.

🔸 Example Language

"If you don't see results in 30 days, we'll refund your money." / "Double your money back if our product doesn't outperform the competition."

Time-Limited Guarantees

Valid only within a specific timeframe. Must request refund within the stated period.

🕐 Example Language

"60-day money-back guarantee. Return within 60 days for a full refund." / "Try risk-free for 90 days."

Conditional Guarantees

Include specific requirements - these conditions must be clearly disclosed at time of purchase to be enforceable.

🔸 Example Language

"Money-back guarantee valid with proof of purchase and original packaging." / "Refund available after completing our 30-day program."

🚫 Undisclosed Conditions Are Void

If a seller advertises an unconditional money-back guarantee but then refuses your refund because of conditions that weren't disclosed (must use product for X days, must return in original packaging, must pay restocking fee), those hidden conditions are likely unenforceable. California law requires material terms to be disclosed before purchase.

💰 Damages You Can Recover

When a seller refuses to honor a money-back guarantee, you can recover more than just the purchase price.

Damage Type Description
Refund Amount Full purchase price as promised in the guarantee
Shipping/Return Costs Costs to return the item if the guarantee didn't specify customer pays
Consequential Damages Additional costs caused by the seller's breach (e.g., had to buy replacement)
CLRA Damages Actual damages plus potential punitive damages for willful violations
Attorney Fees Prevailing consumers recover legal costs under CLRA Section 1780(e)
Civil Penalties Up to $2,500 per violation for false advertising (B&P Code 17536)

Sample Damages Calculation

📊 Example: Online Course "Money-Back Guarantee" Refused

Consumer purchased $997 online course with "30-day unconditional money-back guarantee." Requested refund on day 25; seller refused claiming "you must complete all modules first."

Original purchase price $997
Alternative course purchased $497
Subtotal actual damages $1,494
CLRA punitive damages (potential) $2,988
Attorney fees (if litigated) $5,000+
POTENTIAL TOTAL EXPOSURE $9,482+

💡 The Attorney Fee Leverage

The one-way attorney fee provision in CLRA means even a $500 refund dispute can become a $10,000+ liability for the seller when they add up attorney fees and potential punitive damages. Smart sellers honor their guarantees rather than face this exposure.

📝 Sample Language

Copy and customize these paragraphs for your demand letter. Choose the sections that apply to your situation.

Unconditional Guarantee Breach
Your advertising for [PRODUCT/SERVICE] prominently states: "[EXACT GUARANTEE LANGUAGE FROM AD]." I purchased this [PRODUCT/SERVICE] on [DATE] for $[AMOUNT], relying on this money-back guarantee. I requested a refund on [DATE], well within the guaranteed period. Your refusal to honor this guarantee constitutes breach of contract and false advertising under California Business & Professions Code Section 17500, as you advertised terms you had no intention of honoring.
Hidden Conditions Not Disclosed
You have refused my refund request, claiming that I must [DESCRIBE CONDITION - e.g., "complete all modules," "use the product for 30 days," "provide detailed documentation"]. However, your advertised money-back guarantee made no mention of this requirement. The advertisement stated only: "[EXACT GUARANTEE LANGUAGE]." Under California law, a seller cannot advertise an unconditional guarantee and then impose undisclosed conditions. These hidden conditions constitute a deceptive practice under CLRA Section 1770(a)(14), which prohibits representing that a transaction involves obligations it does not have.
Deadline Dispute
You claim my refund request is outside the guarantee period. However, my records show: I purchased on [PURCHASE DATE], I first requested a refund on [REQUEST DATE], which is [NUMBER] days after purchase. Your guarantee promised [X] days. My request was timely submitted. [IF APPLICABLE: Your initial response delay of [X] days should not count against my refund window, as the delay was caused by your non-response.]
Satisfaction Guarantee - Not Satisfied
Your guarantee promises a refund if the customer is "not satisfied" or "not completely satisfied." I am not satisfied with this [PRODUCT/SERVICE] because [BRIEFLY STATE REASON - e.g., "the product did not perform as described," "the course content did not match the advertised curriculum," "the service did not meet my expectations"]. Your guarantee does not require me to prove the product is defective - only that I am dissatisfied. My dissatisfaction triggers my right to the guaranteed refund. Your attempt to deny this refund violates the express terms of your guarantee.
CLRA 30-Day Notice Paragraph
This letter constitutes the required 30-day notice under California Civil Code Section 1782 of the Consumers Legal Remedies Act. Your refusal to honor your advertised money-back guarantee violates CLRA Section 1770(a)(14), which prohibits representing that a transaction involves rights, remedies, or obligations it does not have, and Section 1770(a)(9), which prohibits advertising goods or services with intent not to sell them as advertised. If you fail to provide the promised refund within 30 days of receipt of this notice, I will pursue all available legal remedies including actual damages, punitive damages, and attorney fees as permitted by CLRA Section 1780.
Credit Card Chargeback Warning
Please be advised that if you do not provide the guaranteed refund within [30 DAYS], I will dispute this charge with my credit card company under the Fair Credit Billing Act. Your advertised money-back guarantee and subsequent refusal to honor it constitutes goods or services "not as described" - a valid reason for chargeback. A chargeback will result in your merchant account being debited the full amount plus fees, and multiple chargebacks can result in increased processing fees or account termination.

📄 Full Sample Demand Letter

Below is a complete demand letter template for enforcing a money-back guarantee. Replace the bracketed placeholders with your specific information.

Complete Demand Letter Template
[YOUR NAME]
[Your Address]
[City, State ZIP]
[Your Email]
[Your Phone]
[DATE]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [SELLER EMAIL]

[SELLER/COMPANY NAME]
Attn: Customer Service / Legal Department
[Seller Address]
[City, State ZIP]
Re: Demand for Money-Back Guarantee Refund - CLRA 30-Day Pre-Suit Notice
Purchase Date: [PURCHASE DATE]
Product/Service: [PRODUCT/SERVICE DESCRIPTION]
Amount: $[AMOUNT]
Order Number: [ORDER NUMBER]

Dear [SELLER NAME]:

I am writing to formally demand a refund of $[AMOUNT] pursuant to your advertised money-back guarantee for [PRODUCT/SERVICE] purchased on [PURCHASE DATE]. This letter also serves as the required 30-day notice under California Civil Code Section 1782 of the Consumers Legal Remedies Act before I initiate legal action.

FACTS OF THE TRANSACTION

On [PURCHASE DATE], I purchased [PRODUCT/SERVICE DESCRIPTION] from your [WEBSITE/STORE] for $[AMOUNT]. Your advertising prominently displayed the following guarantee:

"[INSERT EXACT MONEY-BACK GUARANTEE LANGUAGE FROM AD/WEBSITE]"

Relying on this guarantee, I made the purchase. On [REFUND REQUEST DATE], I contacted your customer service to request a refund. [DESCRIBE WHAT HAPPENED: e.g., "I was told the guarantee does not apply because..." or "I received no response to my request" or "Your representative refused my refund stating..."]

YOUR REFUSAL VIOLATES CALIFORNIA LAW

Your refusal to honor the money-back guarantee violates the following California laws:

1. Consumers Legal Remedies Act (Civil Code Section 1770)

Your conduct violates CLRA Section 1770(a)(14), which prohibits "representing that a transaction confers or involves rights, remedies, or obligations which it does not have." You represented that customers have a right to a money-back guarantee refund, but you refuse to honor this right. Additionally, Section 1770(a)(9) prohibits advertising goods with "intent not to sell them as advertised" - advertising a money-back guarantee you don't honor demonstrates this intent.

2. False Advertising (Business & Professions Code Section 17500)

Your money-back guarantee is advertising about the terms of sale. Refusing to honor it demonstrates your advertising was made with "intent not to sell [goods or services] as so advertised," which is prohibited by Section 17500.

3. Breach of Express Warranty

Your money-back guarantee constitutes an express warranty under California Civil Code Section 1791.2. You expressly promised that if I am not satisfied, I will receive a refund. Your refusal to honor this promise breaches this express warranty.

4. Breach of Contract

The money-back guarantee was a material term of our contract. I paid the purchase price in exchange for the product AND the guarantee. Your refusal to honor the guarantee is a breach of our contract.

DEMAND

I demand the following within 30 days of your receipt of this letter:

1. Full refund of $[AMOUNT] to my original payment method ([CREDIT CARD/PAYPAL/ETC.])
2. [IF APPLICABLE: Reimbursement of $[AMOUNT] for return shipping costs I incurred]

CONSEQUENCES OF NON-COMPLIANCE

If you fail to provide the guaranteed refund within 30 days, I will pursue all available legal remedies, including:

- Filing a lawsuit in California Superior Court or Small Claims Court
- Seeking actual damages (refund plus consequential damages)
- Punitive damages under the CLRA for willful violations
- Attorney fees and costs under CLRA Section 1780(e)
- Filing a chargeback dispute with my credit card company
- Complaints to the California Attorney General, FTC, and BBB
- Public reviews documenting your failure to honor your guarantee

Given California's one-way attorney fee provision under the CLRA, your litigation exposure far exceeds the refund amount. I strongly urge you to honor your guarantee and resolve this matter promptly.

Please contact me at [EMAIL] or [PHONE] within 30 days to arrange the refund.

Sincerely,

_________________________
[YOUR NAME]

Enclosures:
- Copy of receipt/order confirmation
- Screenshot of money-back guarantee advertisement
- Copies of emails/communications with customer service
- [Other supporting documents]

📩 Sending Instructions

  • Send via USPS Certified Mail, Return Receipt Requested - This provides proof of delivery
  • Also send via email - Creates immediate electronic record
  • Keep copies of everything you send
  • Save the green card when it returns with signature
  • Mark your calendar - Day 30 is the deadline for their response

🚀 Next Steps

After sending your demand letter, here's what to expect and how to proceed.

Expected Timeline

Days 1-7

Seller receives letter, reviews with customer service or legal team

Days 7-21

Review period - seller may contact you to negotiate or request information

Days 21-30

Response deadline - seller should provide refund or written response

Day 31+

CLRA notice period expires - you can now file lawsuit for full damages

If They Pay

  1. Verify the amount - Ensure full refund as guaranteed
  2. Keep records - Save proof of payment for your files
  3. Consider reviews - Update any negative reviews if you choose

If They Don't Respond or Refuse

  1. Credit Card Chargeback

    File a dispute with your card issuer. "Services/goods not as described" is a valid reason - the money-back guarantee was part of what you purchased and wasn't delivered. Include your demand letter as evidence.

  2. Small Claims Court (up to $12,500)

    California small claims court is fast and doesn't require an attorney. File where you made the purchase or where the seller does business. Filing fee is typically $30-$75.

  3. Superior Court (over $12,500 or seeking attorney fees)

    For larger claims or to recover attorney fees under CLRA, file in Superior Court. Many consumer attorneys take these cases on contingency because of fee-shifting.

  4. File Complaints

    Report to the California Attorney General (oag.ca.gov), FTC (ftc.gov/complaint), and BBB. These create public records and may trigger investigations.

Need Legal Help?

Money-back guarantee disputes can involve complex advertising and consumer protection laws. Get a 30-minute strategy call with an attorney to evaluate your case.

Book Consultation - $125

California Resources

  • CA Attorney General Consumer Protection: oag.ca.gov/consumers
  • FTC Consumer Complaint: ftc.gov/complaint
  • California Courts Self-Help: courts.ca.gov/selfhelp
  • Small Claims Court Guide: courts.ca.gov/selfhelp-smallclaims
  • Better Business Bureau: bbb.org

⚠ Statute of Limitations

CLRA claims must be filed within 3 years. False advertising claims have a 3-year limit. Contract claims have a 4-year limit for written contracts, 2 years for oral. Act promptly - the longer you wait, the weaker your position.