House bill 194 mandates refunds for incorrect item shipping costs to consumers

February 07, 2025 | Economic Matters Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland


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House bill 194 mandates refunds for incorrect item shipping costs to consumers
The ECM Committee convened on February 7, 2025, to discuss several legislative matters, including House Bill 194, which mandates that merchants refund consumers for return shipping costs when an incorrect item is shipped. The bill specifies that refunds must be processed within 30 days of the consumer's request.

During the discussion, committee members clarified that the bill applies only to situations where the merchant has sent the wrong item, not when the consumer mistakenly orders the wrong product. A representative from the Attorney General's office noted that similar protections are already covered under the Consumer Protection Act, raising questions about the necessity of this specific legislation. However, proponents argued that the bill aims to simplify the process for consumers, allowing them to directly request refunds from merchants without needing to escalate issues to the Attorney General.

Concerns were also raised regarding the potential impact of a proposed 75-cent delivery tax included in the Governor's budget. Committee members questioned whether this tax would also be refunded to consumers in the event of a shipping error. It was clarified that if a refund is issued for shipping costs, any applicable taxes would also be refunded, although the specifics of the delivery tax collection remain unclear.

The committee ultimately moved to support the bill favorably, emphasizing its intent to enhance consumer rights and streamline the refund process for incorrect shipments. Further discussions will likely address the implications of the proposed delivery tax and its relationship to the bill.

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Scribe from Workplace AI
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