The Ultimate Guide For Canadian Consumers To Understand A Money-Back Guarantee

Do you feel better purchasing an item that comes with a money-back guarantee?

What if the product comes with a warranty or the ability to get a refund?

If your answer is YES then you’re not alone because Canadian consumers want protection when spending money.

Get My Money Back

Although not required by law many businesses and manufacturers stand behind the quality of their product.

They use a money-back guarantee, refund policy, or warranty as a way to encourage consumers that it’s safe to buy something.

In other words, they want to sell you stuff and ensure that you are happy with your purchase.

This type of confidence from a manufacturer or store is alluring to consumers across Canada.

Money-Back Guarantee, Refunds, Warranty and Extended Warranties and how they work in Canada

Consumer marketing is a pretty big topic but nothing tops the quality of product a consumer sells you.

This is why companies use marketing ploys to get you to in the least, try their product.

Some companies even offer you a money-back guarantee if you don’t like the product with-in a specified time with the receipt.

This tells me a couple of things about the company.

  • That they are confident in their product quality and will do what they can to satisfy the customer.
  • Not everyone will take advantage of the offer which means fewer returns if the customer is not satisfied.

Questions To Consider Before Making A Purchase

  • How do you get your money back?
  • Will it be a full refund or a partial refund?
  • What if I don’t have my receipt?
  • Who is offering the warranty? The store or the manufacturer.
  • Does the company pay for return shipping of the product or do you keep it?
  • Is the extra effort to return the product worth it to you?

Consumer Protection vs. Marketing Tactics

As mentioned there is no law that states that products and services must have a money-back guarantee, warranty, or refund policy.

Start-up businesses or even long-standing manufacturers may offer a warranty, money-back guarantee, or refund policy.

It’s all part of marketing their product to either get it off the ground and running or to keep a happy customer base.

Some provincial and territorial legislation states that implied warranties apply to every sales contract (unless the seller and buyer both lawfully agree that the warranty does not apply). The implied warranty normally states that the goods be of “merchantable quality” and fit for the purpose for which they were sold. 

Government of Canada – Consumer Questions

However, if a retail store or manufacturer does offer a money-back guarantee they are bound to honour it under the consumer protection act of Ontario.

Consumer Protection Ontario is an awareness program from Ontario’s Ministry of Government and Consumer Services and other public organizations, known as administrative authorities, that promotes consumer rights and public safety.

Consumer Protection Act Ontario

It’s important to point out that this is for Ontario so if you live outside of the province, you should check the Federal, Provincial, and Territorial Consumer Affairs Office where you live.

Paragraph 74.01(1)(c) of the Competition Act is a civil provision.

It prohibits the making, or the permitting of the making, to the public, of any materially misleading product warranty or guarantee, or promise to replace, maintain or repair an article.

This includes circumstances in which there is no reasonable prospect that the warranty, guarantee, or promise will be carried out. 

Competition Bureau Of Canada

What is the difference between a Money-Back Guarantee, Warranty, and Refund?

A money-back guarantee, warranty, and refund policy are different processes but with similar outcomes.

You either get your money back or you get new product.

The refund policy may also be called a return policy.

A warranty is described as a written guarantee that the product will be repaired, replaced within a set time period.

Some products even offer an extended warranty either for free or for a fee payable by the consumer.

Consider whether it’s worth paying for based on the price of the product.

For example, if you are paying $60 for an extended 3-year warranty when the item costs $10 is it worth it to you?

Another example is a 30-day refund policy but with an extended warranty available if you sign up for it.

The extended warranty would back up the quality of the product or whatever is set out in the product policy. You likely won’t get your money back once the extended warranty kicks in.

It’s always important to read the rules and conditions so you are aware of the coverage.

Not all warranties are created equally is what I’m trying to say so be informed before you cash out.

Refund Policy Example

For example, if you go to Canadian Tire their refund policy states that they stand behind their products as long as you have the receipt.

Unopened items, with a receipt, in original packaging and returned within 90 days of purchase will receive a refund to the original method of payment** or will receive an exchange.

Items that are opened, damaged, and/or not in resalable condition may not be eligible for a refund or exchange.

Returns and exchanges may vary according to region due to government restrictions

This is why I always say to keep a folder or envelope handy to store receipts for items that can be returned or have a warranty or money-back guarantee.

Some stores will honour a return without a receipt however you may only get in-store credit as well as the lowest sale price for the item.

Related: The Ultimate Guide For Refunds In Canada

How does a money-back guarantee work?

A money-back guarantee is typically offered by the manufacturer of a product to back up quality.

Although similar a money-back guarantee and a refund are different.

  • a refund can be returned to a store where it was purchased within x amount of days based on store policy if there is one.
  • money-back guarantee or warranty is backed by the manufacturer but again within a specified period or it could be a lifetime warranty with registration and receipt.

For example, if you buy a product online, let’s say from Amazon Canada and you can return it within a set period of time.

Amazon has a stellar return policy and replacement policy which is one of the reasons they are so popular.

Not to mention your items get delivered right to your door or mailbox.

Where would you find a money-back guarantee?

If you visit a product website you may see a money-back guarantee as soon as you land on the home page.

When you are buying a product in-store you can check for a money-back guarantee, warranty or refund policy written in the fine print on the box, read the product label, or perhaps an insert inside the packaging.

Below is the money-back guarantee and extended warranty for a 2-pack of charger leads for Mrs. CBB’s cell phone.

One of the leads is cutting out so she emailed the company direct as instructed and received a response the next day.

Money-Back Guarantee or Replacement Policy INIU Store

How To Write A Consumer Complaint Letter

Here is the defective product email that was sent to the company as well as the customer service reply.

Email From Consumer To Customer Service For Replacement Product or Money-Back Guarantee

We only wanted a replacement for the defective lead so she wrote an email to customer service as instructed on the packaging.


I purchased a dual pack of the 100W USB C to USB C Cables on Amazon Canada and one is defective. It was purchased on April 13, 2021.

Could I please get a replacement?

The issue is that it keeps cutting in and out during the charging process. I tested another lead and it worked fine.


Mrs. CBB ( I just put this here for the sake of the blog but it’s Mrs. CBB’s real name)

How To Write A Reply To A Customer For A Money-Bak Guarantee or Replacement

Customer Service Reply To Consumer For Money-Back Guarantee and Extended Warranty

Hi Mrs. CBB,

We are so sorry for the inconvenience and we will do our best to solve the problem as fast as we can.

Would you please write back your order ID for us so that we could know more about your product details?

I appreciate your patience and understanding.

Would you please tell us True or False to the following questions?

It’s the key to find the real reason to help you out.

1. Could you please gently shake the end connector to check whether it’s loose from the rubber? 2. Could you please take some pictures of the USB port’s pin so that we could see if it’s broken? 3. Is its green light on while charging your device? Do your other cables charge your device well? 4. Please don’t worry, if you received a defective one, we would send a replacement to you immediately.

Thank you so much for your patience and understanding. We provide a 3-year warranty and always stand behind our products.

Hope to get back from you soon.

Best wishes!

As you can read the reply was assuring Mrs. CBB that the charging cord would be replaced.

For quality purposes, they requested information about the item so they can understand what happened and perhaps investigate it on their end.

Money-Back Guarantee Examples

Although a company may offer a money-back guarantee it’s important to also read the terms and conditions.

It’s amazing how many people would rather throw a product away because it doesn’t work or meet their expectations.

Get your money back if you’re not satisfied. Why wouldn’t you not want your money back?

Too much of a hassle? Maybe but it’s your money so you decide.

Below is an example of Gillette’s Money-Back Guarantee for their Fusion 5 ProGlide® or ProShieldTM Cartridges.

Gillette Money-Back Guarantee

Gillette Money-Back Guarantee On Their Website

Not completely satisfied with our Gillette® Fusion5™ ProGlide® or ProShieldTM Cartridges? We’ll give you your money back*—whatever the reason.

To receive your full money back in the form of a prepaid card, please mail the following items within 90 days of purchase:

  1. This Completed Official Money-Back Guarantee Form
  2. Original UPC barcode from the Gillette Fusion5™ ProGlide or ProShield Cartridges product purchased
  3. Original receipt dated between Nov 17, 2014, to June 30, 2019, with the qualifying purchase and price circled
  • To:
  • Gillette Money-Back Guarantee
  • Dept. BA
  • PO BOX 10668

Oil Of Olay Money-Back Guarantee

Almost all beauty products come with some form of money-back guarantee on the box, bottle or in a pamphlet stuffed inside the box.


If you have tried Olay Skin Care products and are not completely satisfied for any reason, we will refund your purchase price, after any coupons or discounts applied, plus applicable taxes and first-class postage in the form of a prepaid card. Offer valid for product purchased February 1, 2021, to June 30, 2021.

Refund requests must be postmarked within 30 days of purchase.

To receive your full money back by mail via prepaid card, mail:
1. A completed Official Money Back Guarantee Form.
2. Original dated receipt with purchase price circled. Must be postmarked within 30 days of purchase.

Notice that Oil of Olay Canada offers a money-back guarantee in the form of a pre-paid card?

So you may not always get cashback in hand or on your credit card and debit card based on the company guarantee policy.

Final Thoughts- Use It Or Lose It

Over the years since we became the frugal family who lives on a budget, we have become product label readers.

Yes, we are the people that may upset other shoppers when they just want to pass by us.

It may sound strange to make a call about a can of deodorant that is not working or even returning it to the store, but we have.

When it comes to the bigger ticket items which is anything over $20 for us we always look for money-back guarantee policies.

Typically we already know the return policy if it’s a big box store but if it’s a small business we ask before we buy.

The same goes for online shopping before we place an order we go looking to see if there are any protection policies for the customer.

You can typically locate a return policy, money-back guarantee, or refund opportunities in a tab or at the bottom of the home page.

On that note, think before you buy and register anything you purchase that comes with a free extended warranty.

You’ll be glad you did!!

Discussion: Have you ever used a money-back guarantee policy or warranty for something you purchased? Tell me about it below as I’d love to read your experiences.

Share to...

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.