Customer Refund

UPDATED: Sep 30, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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