Customer Refund

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Customer Refund

Our small business has a disgruntled customer who after a month of our services decided he wanted to cancel and requested a full refund. We are a subscription digital marketing services company and work was performed during that first month of subscription. Is he entitled to a refund? How do we stop the very threatening messages? What should be our course of action?

Asked on July 24, 2017 under Business Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you did any of the following--
1) Violated the terms of the service agreement;
2) Are providing services that do not meet generally acceptable commercial standards;
3) Carelessly damaged his property or cost him money;
4) Lied about what your service and company could or would do (fraud)
--then he could very likely sue you for a refund or other compensation and get it.
However, if you did not do the above, you would only owe him a refund if there is some refund or cancellation clause in your contract with him and he is properly exercising his rights under it. There is no general right to a refund, however, if the vendor does nothing wrong and the contract does not contain a refund right--i.e. being disgruntled or unhappy, by itself, does not entitle you to a refund.
If he is threatening you with violence or criminal acts, report it to the police. If he is just annoying, you have to put up with it.


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