The short answer

A restocking fee isn't automatically illegal in the United States. For a voluntary return, a retailer may be able to deduct one when the fee was disclosed before you bought the item, the seller follows the stated policy, and the charge is allowed under the law that applies to the transaction.

There's no nationwide 15%, 20%, or 50% limit that makes a fee valid by itself. The deduction is worth questioning if it appeared only after you requested a return, doesn't match the policy shown at checkout, or has no clear calculation. The reason for the return matters too. A change-of-mind return may be treated differently from a defective, damaged, misrepresented, or incorrectly shipped item.

The discussion here is limited to U.S. purchases. UK, European Union, and other jurisdictions use different rules.

What counts as a restocking fee?

A restocking fee is an amount taken out of your return refund. A retailer might describe it as a percentage of the purchase price or as a fixed charge for inspecting, repackaging, or processing the item.

It may be listed separately from other deductions, such as:

• Return shipping or the cost of a return label
• Original shipping charges
• A reduction for missing parts or damage
• A separate processing or handling charge

Ask the seller to identify each deduction rather than treating the entire shortfall as one fee. For example, 20% of a $600 item is $120. That calculation shows the amount, but it doesn't show whether the charge is permitted. The policy, timing, return reason, item condition, and applicable law still matter.

Which terms and rules control the return?

Pull up the order and check these four sources:

1. The seller's policy in effect when you ordered. Look at the product page, cart, checkout screen, order confirmation, and any category-specific terms.
2. The reason for the return. A policy for unwanted or incorrectly ordered merchandise may not address a defective item, shipping damage, a material mismatch with the description, or an item sent by mistake.
3. State law and the purchase contract. Consumer-protection and contract rules vary by state, and some transactions have additional requirements or exceptions.
4. Marketplace rules. A marketplace may set its own return and refund requirements in addition to the seller's website policy.

The Federal Trade Commission's Rule on Unfair or Deceptive Fees FAQ isn't a general federal law about merchandise restocking fees. The rule took effect on May 12, 2025, and covers specified transactions, including short-term lodging and live-event tickets. In covered transactions, a fee that cannot be avoided generally has to be included in the advertised total price.

That rule doesn't create a percentage cap for ordinary merchandise returns. It also doesn't give a retailer permission to hide a return deduction. For a merchandise purchase, the relevant questions remain what you agreed to, what the seller disclosed, how the fee was calculated, and what law applies.

When should you challenge the deduction?

Review the charge closely when:

• You couldn't find the fee before placing the order.
• The product page promised free or full-price returns, but the refund includes a fee.
• The policy gives one percentage and the refund uses another.
• The retailer won't say whether it calculated the fee from the regular price, sale price, or another amount.
• The item was defective, damaged, counterfeit, materially different from its description, or sent in error.
• The seller says the item was used or damaged but won't explain the inspection result.
• A written waiver, free-return promotion, loyalty benefit, or customer-service promise appears to remove the fee.
• The retailer changed its return terms after you ordered and applied the newer version.

These facts don't guarantee that you'll receive more money. They do give you something specific to ask the retailer to correct or explain.

Check the records before accepting a reduced refund

Save the documents before links or return portals disappear. Keep screenshots or PDFs of:

• The product page and return-policy link
• The checkout page showing the return terms
• Your order confirmation and receipt
• The return authorization or shipping instructions
• Tracking showing that the seller received the item
• Photos or video of the item and its packaging
• Messages promising a waiver or describing the deduction
• The refund confirmation and your bank or card statement

Now compare the refund with the policy shown when you ordered.

How to ask the retailer to remove the fee

Write to the retailer before escalating the payment. Keep the request short, include the order number, and ask for an itemized explanation.

Subject: Request to review restocking-fee deduction for order [order number]

I returned [item] on [date] because [brief reason]. The return policy shown when I ordered stated: "[short quotation]."

My refund was reduced by $[amount], described as a restocking fee. Please provide the percentage or formula used, the policy version that applied to this order, and the inspection findings if the deduction is based on the item's condition.

If this charge was not disclosed before purchase or doesn't apply to this return, please review the deduction and issue the remaining refund. Please respond in writing.

Describe the return reason accurately. If the item was defective, damaged, or incorrectly supplied, say that directly rather than calling it merely "unwanted." Include photographs and the relevant part of the listing when they support your description.

If the retailer refuses

The next step depends on where you bought the item and how you paid.

Marketplace purchase

Open the marketplace's dispute or return case before its stated deadline. Upload the original listing, policy screenshots, tracking, photographs, and the seller's refund calculation. The marketplace may decide the case under its own buyer-protection rules, which can differ from the seller's website terms.

Credit or debit card payment

Contact the card issuer or payment provider promptly and ask which billing-dispute process applies. Deadlines and protections vary by payment method, so follow the issuer's instructions instead of assuming a chargeback will be approved. Send the policy, proof that you returned the item, the refund record, and your written communication with the merchant.

A payment dispute is a review of the transaction evidence. It isn't an automatic finding that the restocking fee violated state law.

State consumer-protection office

If the merchant won't respond or appears to be using an undisclosed or misleading fee, contact your state's attorney general or consumer-protection agency. The office may accept a complaint, provide information, or offer mediation; it can't guarantee that the business will issue a refund.

State procedures differ. The Georgia consumer complaint process, Texas Attorney General complaint page, and Kentucky consumer complaint and mediation information show the kinds of records an agency may request.

For a larger amount or a dispute involving a defective product, consider advice from a qualified local consumer-law professional. Small-claims procedures and dollar limits depend on the state.

Common questions

Is a 15% or 20% restocking fee legal?

It may be, but the percentage isn't a legal safe harbor. Check whether the fee was disclosed before purchase, applies to your type of return, matches the seller's calculation, and is allowed under the law governing the transaction.

Can a retailer charge a restocking fee for a defective item?

Don't assume that a change-of-mind policy answers a defect, shipping-damage, or wrong-item complaint. Notify the seller promptly, describe the problem, provide photographs, and ask what remedy is available under the seller's warranty and applicable consumer rules.

Can a retailer reveal the fee only after I start a return?

A fee disclosed only after purchase or in the return portal is a strong reason to request a review. Save what the seller displayed before payment and ask for the policy version it is relying on. Whether late disclosure makes the charge unlawful depends on the facts and applicable state law.

Does the FTC fee rule ban restocking fees?

No. The rule addresses specified transactions and certain unavoidable-fee disclosures. It isn't a blanket ban or percentage cap for ordinary merchandise return fees.

What evidence is most useful?

The most useful records usually show the policy at the time of purchase, the reason for return, the item's condition, delivery back to the seller, the refund that was promised, and the final deduction. Put your request for an explanation and correction in writing, then keep the response.