If your e-commerce business sells to customers in California, you are subject to a detailed pre-sale disclosure regime that goes beyond typical terms-of-service requirements. California law mandates that sellers make specific disclosures about their business identity, address, and return and refund policies before accepting payment from any California buyer. Failure to comply can expose your business to criminal liability, civil penalties, and an enforceable customer right to return goods for a full refund.

What Cal. Bus. & Prof. Code § 17538 Requires

California Business and Professions Code § 17538 establishes the core pre-sale disclosure requirements for sellers transacting with California consumers. Before accepting payment from a California buyer, you must clearly and conspicuously disclose:

• Your return and refund policy — the specific terms and conditions under which goods may be returned and refunds will be issued
• Your legal business name — the name under which your business is legally registered, not merely a trade name or DBA
• Your complete street address — a P.O. box alone does not satisfy this requirement; you must provide a physical street address

These disclosures must be made before the transaction is completed. Burying this information in a lengthy terms-and-conditions page that users must scroll through or affirmatively seek out is unlikely to satisfy the statute’s “clear and conspicuous” standard. The information should be visible on or accessible from the checkout page before the buyer submits payment.

Conspicuous Display of Limited Refund Policies Under Civil Code § 1723

If your return policy is anything less than a full refund for any reason, California Civil Code § 1723 imposes additional requirements. Retailers who limit or restrict a customer’s ability to return merchandise for a full refund must post their policy conspicuously—in a manner that is reasonably calculated to be seen by the consumer before the purchase is completed.

For online sellers, this typically means the policy must appear:

• On or adjacent to the product listing page
• During the checkout flow, at or before the final payment confirmation step
• In a font size and placement that is not obscured by surrounding content

If you fail to post a compliant limited-return policy, the default rule under Civil Code § 1723 applies automatically: the customer has the right to return the goods for a full refund within 30 days of purchase, provided they have proof of purchase. This is not a penalty you can negotiate around after the fact—it is the legal default that kicks in when the required disclosure is absent.

What Goods Are Exempt

California’s refund disclosure requirements do not apply to every product category. Sellers are not required to accept returns on the following types of goods:

• Food, plants, and flowers — perishable goods are generally exempt
• Customized or personalized goods — items made to the buyer’s specifications
• Items designated “all sales final” — provided this designation is clearly disclosed at the time of purchase
• Goods that cannot be resold for health or safety reasons — such as opened personal care products or used medical devices that cannot be sanitized for resale

Even for exempt categories, the exemption only protects you if you make the disclosure. A business that sells customized goods but fails to inform the customer at checkout that those goods are non-returnable cannot later rely on the exemption to refuse a return demand. The exemption and the disclosure requirement work together—you must disclose to benefit from the exemption.

Criminal and Civil Penalties

Non-compliance with § 17538 and § 1723 carries meaningful consequences. Violation of Business and Professions Code § 17538 is a misdemeanor under California law, carrying potential penalties of:

• A fine of up to $1,000
• Up to 6 months imprisonment
• Or both

While individual criminal prosecution of e-commerce businesses under this statute is uncommon, consumer complaints can trigger state enforcement actions. More practically, non-compliance creates a private civil exposure: a customer who was not given the required disclosures about a limited return policy has a legally enforceable right to a full refund under Civil Code § 1723. For businesses that sell a high volume of consumer goods to California customers, even a small percentage of return demands that would otherwise be outside policy can represent a meaningful financial liability.

California’s Unfair Competition Law (Bus. & Prof. Code § 17200) provides an additional avenue for enforcement. Failure to comply with § 17538 can constitute an unlawful business act under the UCL, exposing businesses to injunctive relief, restitution, and civil penalties of up to $2,500 per violation.

Practical Compliance Steps for E-Commerce Businesses

Meeting California’s disclosure requirements is straightforward if implemented systematically. Here is what your checkout flow should include:

• Legal business name and street address. Include your full legal entity name and physical address in your website footer and on any order confirmation page. Make sure the footer is visible without excessive scrolling on mobile devices.
• Return and refund policy link at checkout. Place a clearly labeled link to your full return policy on the cart and checkout pages, near the payment button. Language like “By completing your purchase, you agree to our Return Policy” satisfies the conspicuous linkage requirement when the linked policy is complete.
• Inline summary for restricted policies. If your policy is anything other than “full refund, no questions asked,” state the key restriction inline at checkout—not just in a linked document. For example: “All sales are final. No returns or exchanges.” or “Returns accepted within 14 days for store credit only.”
• Exemption disclosures on product pages. For customized goods, perishables, or “all sales final” items, disclose the non-returnable status on the product listing page—before the customer even adds the item to their cart.
• Order confirmation emails. Include your return policy terms and business contact information in every order confirmation email sent to California customers. This creates a timestamped record of the disclosure.

Selling to California? Know the Rules Before You List

California’s consumer protection framework is among the most demanding in the country, and its reach extends to any online seller who targets or sells to California consumers—regardless of where the business is incorporated or physically located. An Ohio-based retailer with no California storefront is still subject to § 17538 if California customers can purchase from its website.

If you have questions about whether your current checkout flow and return policy meet California’s requirements, or if you need help drafting disclosures that protect your business while maintaining a good customer experience, the e-commerce attorneys at Revision Legal can help. Contact us for a consultation.