Can You Refuse A Refund For A Custom Order?

Custom orders can be brilliant for your business. A customer chooses the size, colour, engraving, artwork or measurements, you put time and materials into making it, and then the customer changes their mind.

It feels fair to say, we made this just for you, so we can't refund it. In many cases, UK consumer law agrees with you. But there are some important limits, especially if the product is faulty, not as described, or your online cancellation terms aren't clear.

Here's how refunds and cancellations usually work for bespoke, personalised and made-to-order goods in the UK.

Can You Refuse A Refund For A Custom Order?

Yes, you can often refuse a refund for a custom order if the customer simply changes their mind, but only where the goods are genuinely made to the customer's specification or clearly personalised.

Under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers usually get a 14-day cancellation period for online, phone and other distance sales. For most goods, that 14 days starts the day after the customer receives the goods.

However, there's an exception for goods that are made to the consumer's specifications or are clearly personalised. This is the rule many custom product businesses rely on.

Common examples include:

• a necklace engraved with the customer's initials
• curtains made to the customer's window measurements
• a wedding sign with names and dates printed on it
• a custom logo cake topper
• a sofa made in a non-standard fabric chosen specifically by the customer

If the customer has simply changed their mind, ordered the wrong colour, or no longer needs the item, you may be able to refuse a refund if your customer terms clearly say that bespoke or personalised orders can't be cancelled once production has started or once the order has been accepted.

The key is that the product must genuinely be custom. Calling something custom in your policy won't make it custom if you're really selling standard stock.

What Counts As Bespoke Or Personalised Goods?

It depends on how much the customer has shaped the final product. A product is more likely to be bespoke if you can't easily resell it to another customer.

The law looks at substance, not just the label on your website. If the customer has given you measurements, wording, artwork, initials, colours outside your standard range or other specific instructions, that's much stronger than simply choosing from normal stock options.

Likely To Be Bespoke Or Personalised

• a T-shirt printed with a customer's photo
• a ring made to a non-standard size and engraved with a date
• kitchen cabinets made to specific room measurements
• a commissioned portrait based on a customer's brief
• corporate gifts printed with a client's logo

Less Likely To Be Bespoke Or Personalised

• a standard dress made only after the order is placed
• a product where the customer chooses small, standard options from a drop-down menu
• a normal stock item that you don't keep in inventory until someone orders it
• a standard item in a common size or colour that you can easily resell

For example, say Maya runs an online embroidery business. If a customer orders a sweatshirt with their child's name embroidered on it, Maya can usually refuse a change-of-mind refund. But if the customer orders a plain sweatshirt in size M from Maya's standard range, the normal online cancellation rules are more likely to apply, even if Maya only orders the sweatshirt from her supplier after receiving the customer's order.

Do Customers Have Cancellation Rights For Made-To-Order Products?

Sometimes, yes. A made-to-order product isn't automatically excluded from cancellation rights just because you start making it after the customer places the order.

This is one of the most common traps for product businesses. Made to order can mean different things commercially, but consumer law is more specific.

If the product is made to the customer's specifications or clearly personalised, the 14-day cancellation right usually doesn't apply. If it's a standard product that you manufacture or source after the order comes in, the customer may still have the usual cancellation rights.

For online sales, if cancellation rights apply, the customer generally has:

• 14 days from the day after delivery to tell you they want to cancel
• another 14 days to send the goods back after telling you
• a right to be refunded within 14 days after you receive the goods back, or after they provide evidence that they've sent them back

You can usually require the customer to pay return postage if you've told them about this clearly before they buy. If you don't tell them, you may be left covering the return cost.

You also need to give certain pre-contract information before the customer places the order. This includes information about cancellation rights where they apply, and where they don't apply, a clear explanation of the exception you're relying on.

If you fail to give proper cancellation information, the cancellation period can be extended by up to 12 months. That's why it helps to have your checkout wording, customer terms and refund policy working together, not saying three different things.

Can You Refuse A Refund If The Custom Order Is Faulty?

No, you can't refuse a refund just because the product is custom if it's faulty, not as described, or not fit for purpose.

The Consumer Rights Act 2015 gives consumers rights that apply even to bespoke and personalised goods. Your policy can't remove these rights, and a blanket no refunds on custom orders statement can be misleading if it doesn't make an exception for faulty goods.

Goods you sell to consumers must be:

• of satisfactory quality
• fit for any particular purpose the customer made known to you
• as described, including matching photos, samples and written descriptions
• installed properly if installation is part of what you agreed to provide

If the product is faulty, the customer may have the following remedies under the Consumer Rights Act 2015:

• Within 30 days: the customer can usually reject the goods and ask for a full refund.
• After 30 days: the customer usually has the right to a repair or replacement first.
• If repair or replacement fails: the customer may be able to reject the goods or ask for a price reduction.

There are practical details that matter. For example, a customer can't usually reject a product just because they don't like a design choice they approved. But if you printed the wrong name, used the wrong measurements, supplied poor quality materials, or the item doesn't match your product description, the customer may have a valid complaint.

If a dispute comes up, keep a clear paper trail. Save the customer's instructions, proofs, approvals, measurements, mock-ups, product listing, photos, delivery records and any messages about the issue. Without a clear record, you may struggle to show that you met the agreed product specifications.

Can You Keep A Deposit For A Custom Order?

Yes, you may be able to keep a deposit if the customer cancels, but only to the extent it's fair and reflects your real loss or costs.

Deposits are common for bespoke products because you may need to buy materials, book production time, turn away other work or start design work before the final balance is paid. That's reasonable, but UK consumer law still expects your terms to be fair.

Under the Consumer Rights Act 2015, unfair consumer terms may not be binding. A term that says every deposit is non-refundable in all circumstances can be risky if it lets you keep more than is fair.

A better approach is to explain what the deposit covers and when it becomes non-refundable. For example, your policy might say the deposit covers design time, sourcing materials and reserving production time, and that once production has started, you may retain amounts needed to cover work already done and costs already incurred.

When Keeping The Deposit Is More Likely To Be Fair

• you have already bought custom materials that can't be returned
• you have completed design, artwork or consultation work
• you have started manufacturing the item
• you have turned away other orders for that production slot
• your terms explained the deposit clearly before payment

When You May Need To Refund Some Or All Of It

• you haven't started any work or incurred meaningful costs
• you can reuse the materials for another customer
• your deposit term was hidden or unclear
• you cancel the order or can't supply what was promised
• the goods are faulty or not as described

If the amount is significant, it's worth getting tailored advice on the wording. Templates often miss the practical details of how your production process actually works.

What Should Your Refund Policy Say For Custom Orders?

Your refund policy should clearly explain when custom orders can and can't be cancelled, while preserving the customer's legal rights for faulty goods.

A good policy doesn't need to be harsh. In fact, clear and fair wording usually gives customers more confidence because they know what to expect.

For a bespoke product business, your policy should usually cover:

• what you mean by custom, bespoke, personalised or made-to-measure goods
• when an order becomes binding
• whether changes are allowed after order confirmation
• when production starts and why that matters
• whether deposits are refundable, partly refundable or non-refundable under your customer contract
• what happens if the customer cancels before production starts
• what happens if the customer cancels after production starts
• how you deal with faulty, damaged or incorrect goods
• who pays return postage where returns are allowed
• delivery timeframes and what happens if there are delays

Your wording should avoid saying things like no refunds under any circumstances. That can create problems because it suggests customers have no rights even where the goods are faulty.

A safer style is to say that custom or personalised orders can't usually be cancelled or refunded for change of mind once accepted or once production has started, but this doesn't affect the customer's statutory rights if the goods are faulty, not as described or not fit for purpose.

Make sure the policy is easy to find before checkout. If the first time a customer sees the no-cancellation term is after they pay, it may be harder to rely on it.

How Should You Handle Online Checkout And Cancellation Information?

You should give cancellation and no-cancellation information before the customer places the order, especially if you're selling online.

For distance sales, the Consumer Contracts Regulations require you to give consumers key pre-contract information. For custom goods, this includes making it clear where the normal 14-day cancellation right doesn't apply because the goods are made to the customer's specification or clearly personalised.

Practical places to include this wording include:

• the product page, near the customisation options
• the checkout page, before payment
• a tick box confirming the customer understands the custom order terms
• your terms and conditions
• your refund policy
• the order confirmation email

Try not to hide the key point in a long terms and conditions document only. If your business relies on the custom order exception, make it obvious at the moment the customer is choosing the personalised details.

For example, you might ask the customer to confirm that:

• they have checked all spelling, names, dates and measurements
• they understand the item is made to their specifications
• they understand they can't cancel for change of mind once the order is accepted or production has started
• they know this doesn't affect their rights if the product is faulty or not as described

This kind of practical step can prevent disputes before they start. It also gives you evidence if a customer later says they didn't realise the item couldn't be returned.

What If The Customer Gave The Wrong Measurements Or Spelling?

You can usually refuse a refund where the customer gave incorrect information and you made the item correctly based on that information.

This comes up a lot with made-to-measure, engraved and printed products. If the customer typed the name incorrectly, approved a proof with a typo, or gave the wrong measurements, the issue may not be your fault.

That said, your process matters. You put yourself in a much stronger position if you:

• ask the customer to double-check all custom details before payment
• send a proof for approval where the design is complex
• state that production won't start until approval is received
• keep written records of approvals
• explain measurement tolerances where small variations can occur

If your product requires technical measurements, don't assume the customer knows how to measure correctly. Give clear instructions, diagrams or examples where possible. If a measurement method is unusual and you don't explain it, the dispute may become harder to resolve.

You can still choose to offer a goodwill discount, remake or partial refund where it makes commercial sense. Just make sure your customer service choices don't accidentally create a policy you can't sustain for future orders.

Key Takeaways

• You can often refuse change-of-mind refunds for goods that are genuinely bespoke, personalised or made to the customer's specifications.
• Made to order isn't always enough. If the item is a standard product that can be resold, the usual 14-day online cancellation rights may still apply.
• You can't exclude the customer's rights under the Consumer Rights Act 2015 if the goods are faulty, not as described or not fit for purpose.
• Deposits should be fair and linked to your real costs, work already done or losses from the cancellation.
• Your refund policy, product pages and checkout wording should clearly explain when cancellation rights do and don't apply.
• Written approvals, proofs and records of customer instructions can make all the difference if a custom order dispute comes up.

If you'd like help with your custom order terms, refund policy, online checkout wording or deposit clauses, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.