Price reduction for problems with goods or services
If there is a problem with goods or a service you have received and it is not possible to resolve it, you can sometimes seek a partial refund or request to pay a reduced price.
In general, this option is available for minor issues that:
- the business refuses to resolve
- the business can’t resolve within a reasonable time or without significant inconvenience to you
- recur after previous attempts to resolve them
- occur after previous issues have been resolved.
What level of price reduction is possible?
Where there is a problem with an item or a service that you have received, any price reduction you request should be proportionate. This means the reduction should reflect the reduced value of the item or service because of the issue.
Consumer law does not provide guidelines for price reductions, so it’s best if you and the business can try to agree the amount of reduction based on the issue and the type of good or service.
Proportionate price reduction on goods
For goods, a proportionate price reduction takes account of the reduced value of the goods now that they have a fault. It might be a good solution where:
- the fault is minor
- a repair or replacement hasn’t resolved the issue
- it’s too late to use the short-term right to terminate because it’s more than 30 days since you received the goods.
Example
You bought a new bike in store. The sales assistant told you that it comes with a handlebar extension. When you returned to collect it, it turns out a handlebar extension isn’t available with this bike. You could cancel the contract because it’s within 30 days, but you still like the bike, so you agree to a proportionate reduction in price. In this case, you agree a 10% refund with the store.
Example
You bought a washing machine last year. In the past couple of weeks, the light indicating the chosen wash cycle has stopped working. The store where you bought it can’t send anyone to look at it for three weeks. You think you can live with this minor issue with the light, so, instead of waiting for the repair, you negotiate a €50 refund from the business based on the reduced value of the machine.
Proportionate price reduction on services
If a service hasn’t been provided as agreed, the best solution is for the business to fix the issue. They should do this within a reasonable time, free of charge and without significant inconvenience to you.
If the business can’t or won’t fix the problem with the service, you can request a proportionate reduction in price. This can be a lower price or a partial refund that reflects the reduced value of the service you received compared with the full value of the service you agreed.
Example
You paid for a canopy to be installed in your garden. After three months, it developed a leak. The business sent someone to fix it. It was mostly fixed, but there was still a small leak at the side of the canopy. You think about whether to cancel and get a refund, but you don’t really want the hassle of having the canopy removed. When the business offers a partial refund of 20% of the price, you decide to accept.
What can I do if the problem is serious?
A serious fault is one that severely affects your ability to use the goods or service.
You have the right to terminate a contract and get a full refund if a fault is serious and the business cannot or will not fix it and/or you no longer have confidence that it can do so. You can choose to accept a reduction in price in this situation if you prefer.
In some cases, an issue is so serious that you can terminate a contract immediately, without having to first accept a repair or a replacement. This would apply if, for example, the goods or service are unsafe.
If you exercise your final right to terminate, the business should refund you within 14 days. They must use the same payment method you used to pay for the goods or services (you can ask for a different payment method if you wish).
If goods must be returned or uninstalled, the business should pay for this or else reimburse you if you pay to uninstall or return the items yourself.
