Writing a Refund and Returns Policy for a Singapore Online Store

What Singapore law says: the lemon law in brief

Singapore's lemon law is part of the Consumer Protection (Fair Trading) Act, in force since September 2012. The Ministry's general advisory on the lemon law and the government's lemon law explainer set out the key points for retailers:

• It covers goods that do not conform to the contract at delivery: defective, not of satisfactory quality, not as described or not fit for purpose.
• It covers goods bought online, second-hand goods, and sale or display items marked non-refundable. It does not cover services, rentals, or business-to-business sales.
• If a defect is found within six months of delivery, it is presumed to have existed at delivery unless you can prove otherwise, or the presumption does not fit the goods (such as food past its normal shelf life). After six months, the customer must prove it.
• The customer first asks for repair or replacement, which you should provide within a reasonable time and without significant inconvenience.
• If repair or replacement is impossible, disproportionately costly or not done in reasonable time, the customer can keep the item at a reduced price or return it for a refund, which may be reduced to reflect use.

This guide is a plain-English summary for store owners, not legal advice. If you sell high-value or regulated goods, have your terms reviewed by a lawyer.

Change of mind vs defective goods

The single most useful thing a policy can do is separate the two cases clearly, because the law treats them differently.

A generous change-of-mind policy is a selling point, not a legal duty. Pick something you can afford to honour every time, then write it down precisely.

What to put in your refund and returns policy

Write in short sections with headings, so a customer can find their answer in seconds. Cover each of these:

Use real numbers, not vague words. 'Contact us within 7 days of delivery' is clear; 'within a reasonable time' leads to arguments. The one place to keep general wording is defective goods: say you will handle them in line with Singapore consumer law, rather than inventing a short deadline that the lemon law does not allow.

Wording that causes trouble, and better alternatives

Asking customers to report courier damage quickly is reasonable and helps you claim from the courier. It does not cancel the six-month presumption for other defects, so do not word it as the only window for any complaint.

How your refund policy affects chargebacks

When a customer disputes a card payment, the outcome often turns on what the customer was told before paying. Stripe's dispute categories guide advises having a clear return or cancellation policy that is easy to find or explicitly disclosed before purchase. In disputes about refunds, Stripe's evidence fields ask for the language of your refund policy as shown to the customer, and how it was disclosed.

• Link the policy from the checkout page and the footer, not only a hidden page.
• Add a tick-box or a line near the pay button for final-sale or made-to-order items.
• Keep old versions, so you can show the policy that applied on the order date.
• Answer refund emails quickly; customers who get no reply go to their bank.
• If you refuse a refund, explain why in writing and point to the policy wording.

Our Stripe dispute and chargeback guide covers what evidence to submit and the fees involved.

CCS e-commerce guidelines and showing the policy

The enhanced TR 76 e-commerce guidelines, announced by Enterprise Singapore, CCS and the Ministry of Home Affairs in September 2025, are voluntary, but they expect accurate information on prices, mandatory fees and return and exchange policies before a customer commits. A return policy linked from product pages and checkout meets that expectation and reduces disputes. Our summary of the enhanced e-commerce guidelines lists the other points, such as genuine discounts and easy cancellation.

If customers do complain, many disputes are settled by mediation. The Consumers Association of Singapore (CASE) handles consumer complaints, and a clear, fair written policy puts you in a far better position in that process.

Setting up the policy on Shopify

Shopify's store policies help page explains the options:

1. 1

   Go to Settings > Policies

   In Shopify admin, open Settings, then Policies. You will see the return and refund policy, privacy policy, terms of service, shipping policy and contact information.

2. 2

   Choose automated or custom

   Automated store policies generate text from your store settings and return rules and update when those change. Or turn automation off and write your own.

3. 3

   Match your return rules

   If you use automation, set your return rules (return window, fees, final-sale items) so the generated policy matches what you actually do.

4. 4

   Add the Singapore points

   Shopify says automation does not replace your responsibility to add practices the template does not cover. Add the faulty-goods wording and your UEN and contact details.

5. 5

   Link it and test

   Check the policy appears at checkout and in the footer, then place a test order and read it as a customer would.

Shopify saves past versions of your policies for 2 years, which helps when a dispute refers to an older order. Our Shopify store setup checklist covers the other launch settings.

Do it yourself or get help?

Most store owners can write a good policy in an hour using the checklist above. Decide your change-of-mind rules first, then write the faulty-goods section in line with the lemon law, and link the result from checkout.

If you are building a new store, our Shopify Store package (S$1,890) sets up the store with refund, shipping, privacy and terms pages in place, linked from checkout and the footer, on an account in your name.