RELATING TO DECEPTIVE PRACTICES.

HB2614

HOUSE OF REPRESENTATIVES

H.B. NO.

2614

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to deceptive practices
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
The legislature finds that while most
merchants selling cosmetics accept returns or exchanges, a growing number do
not.
�
This small subset of merchants has
generated frequent consumer complaints to the office of consumer protection
within the department of commerce and consumer affairs.
�
These merchants have reportedly used high‑pressure
sales tactics and frequently target out-of-state visitors.

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The legislature further finds that
existing consumer protection laws under section 481B-5.5, Hawaii Revised
Statutes, require merchants to post a conspicuous sign informing purchasers of
any return or refund limitations.
�
However,
some merchants selling cosmetics operate under the belief that visitors are
unfamiliar with these requirements and unlikely to pursue legal remedies for
violations.
�
Consumers also report that
signs stating "no refunds" or "all sales final" are often
missing, too small to read, or not visible at the location where the
transaction is completed.
�
Recent
complaints also show an increase in merchants selling costly LED light therapy
devices, often for thousands or even hundreds of thousands of dollars, purported
to provide cosmetic benefits such as acne treatment, skin rejuvenation,
collagen stimulation, or wound healing.
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Consumers
commonly learn only after purchase that returns are not permitted, resulting in
significant financial harm.
�
Therefore,
the legislature finds that greater transparency, accountability, and consumer
protections are necessary for transactions involving cosmetics.

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The purpose of this Act is to:

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(1)
�
Require merchants
that sell cosmetics to accept returns of new or unopened goods within specified
timeframes;

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(2)
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Clarify the
definition of a "conspicuous sign"; and

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(3)
�
Require a merchant
that sells cosmetics and receives three or more warning letters from the office
of consumer protection for failing to post a conspicuous sign to post a return
and refund policy sign.

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SECTION 2.
�
Chapter 481B, Hawaii Revised Statutes, is
amended by adding a new section to part I to be appropriately designated and to
read as follows:

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"
�481B-
�
Cosmetics;
returns and refunds; mandatory signage; office of consumer protection.
�
(a)
�
Any merchant that sells
cosmetics and receives three or more warning letters from the office of
consumer protection for failing to post a conspicuous sign as required by
section 481B-5.5 shall:

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(1)
�
Post visible return and refund policy signs at the entrance of the store,
and up to five additional signs throughout the store; and

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(2)
�
Ensure that no fewer than one sign is visible from each point of sale.

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(b)
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The
signs shall be distributed to the merchant by the office of consumer protection
at no charge to the merchant.
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Each sign
shall:

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(1)
�
Be no less than
twenty inches in height and thirty inches in length;

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(2)
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Have a yellow
background with black letters and numbers no less than three inches in height;
and

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(3)
�
Contain the
following language, "Refunds accepted within 30 days of purchase.
�
Between 30 and 60 days of purchase, the
merchant may choose whether to provide a refund, merchandise credit, or
exchange.
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No returns accepted after 60
days."

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(c)
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The
merchant shall be reminded of the signage requirement in this section in each
warning letter issued by the office of consumer protection.
"

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SECTION
3
.
�
Section
481B-5.5, Hawaii Revised Statutes, is amended to read as follows:

����
"
�481B-5.5
�
Returns for refunds, merchandise credits,
and exchanges.
�
(a)
�
As used in this section, unless the context
otherwise requires:

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"Ancillary charges"
includes all charges paid to the merchant that are necessary for the use of the
goods for their purchased purpose and all sums paid for agreements for service,
warranty, or replacement.

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"Conspicuous sign" means a
sign posted in the merchant's place of business in a [
location reasonably
calculated to bring the sign to the attention of
]
manner designed to
ensure that it is noticed by
purchasers before a purchaser makes a
purchase.
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"Conspicuous sign" includes a written disclosure on
the merchant's website and a sign with a
boldface type of a
minimum size of fourteen points
:

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(1)
�
Attached to the
item itself;

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(2)
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Affixed to each
cash register or point of sale;

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(3)
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Situated to be
clearly visible to the buyer from the cash register, payment terminal, or
digital device used to process sales and issue receipts to the purchaser; and

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(4)
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Posted at each
store entrance used by the public.

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"
Cosmetics"
means all articles intended to be rubbed, poured, sprinkled, or sprayed on,
introduced into, or otherwise applied to the human body or any part thereof for
cleansing, beautifying, promoting attractiveness, or altering the appearance.
�
"Cosmetics" includes but is not
limited to skin moisturizers, perfumes, lipsticks, nail polishes, makeup,
cleansing shampoos, permanent waves, hair colors, deodorants, and LED light
therapy devices, as well as any substance intended for use as a component of a
cosmetic product.

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"Exchange" means a
transaction between a merchant and a purchaser in which a previously purchased
item is exchanged for another item.

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"Full amount of the
payment" includes the amount paid for the returned goods, including any
ancillary charges or taxes incident to the purchase of the returned goods, and
without any deduction for restocking of the merchant's inventory, or for administration
of the refund, exchange, or merchandise credit.

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"LED
light therapy device" includes any instrument that employs light-emitting
diodes to produce wavelengths on the visible light or infrared spectrums for
various cosmetic purposes, including acne treatment, skin rejuvenation,
collagen production stimulation, and cutaneous wound healing.

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"Merchandise credit" means
the crediting to the purchaser of the full amount of the payment upon return of
the goods and allowing the purchaser to purchase goods from the merchant with
the merchandise credit, or applying to the purchaser's credit account with the
merchant, in the amount of the merchandise credit.

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"Merchant" means any
person engaged in the business of offering goods for sale to purchasers at
retail.

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"Point of sale" means
the location or system where a retail transaction is completed.
�
It involves the exchange of goods or services
for payment and typically includes equipment such as cash registers,
payment terminals, and digital devices used to process
sales and issue receipts to customers
.

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"Proof of purchase" means
a sales slip, receipt, credit card slip, or any other documentation that
substantiates the sale of the goods from the merchant and the amount of
payment.

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"Purchaser" means a
natural person who is returning goods that were purchased or received primarily
for personal, family, or household purposes.

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"Refund" means the return
to the purchaser of the full amount of the payment upon return of the goods, in
accordance with this section.

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"Repacking and transportation
charges" means the charges for repacking, pick up, and transportation of
goods previously delivered, unpacked, and set up by the merchant at the
direction of the purchaser.

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"Return" or "return
of goods" means the acceptance by the merchant of goods from a purchaser,
whether for refund, merchandise credit, or exchange, and includes the
cancellation of a custom or special order before the merchant is obligated to
make payment on the order and the cancellation of a layaway.

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(b)
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Except as provided in this section, all merchants shall accept the
return of goods for refund, merchandise credit, or exchange, giving purchasers
rights that are no less than those provided in this section.
�
[
The
]
Notwithstanding subsection
(c),
the merchant may:

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(1)
�
Choose one of the
following policies by posting a conspicuous sign notifying purchasers of any
one of the following limitations:

���������
(A)
�
Refunds only;

���������
(B)
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Refunds or
merchandise credit only;

���������
(C)
�
Exchanges or
merchandise credit only; or

���������
(D)
�
No refunds,
merchandise credits, or exchanges; and

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(2)
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Place specific
limitations on the policy adopted by posting a conspicuous sign notifying the
purchasers of any limitations allowed by subsections [
(c), (d),
] (e), [
and
]
(f)[
.
]
, (g), and (h).

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(c)
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Notwithstanding subsection (p) to the
contrary, all merchants that sell cosmetics shall accept the return of goods
for refund, merchandise credit, and exchange, giving purchasers rights that are
no less than those provided in this section.
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A merchant that sells cosmetics shall:

����
(1)
�
Provide the
purchaser with a receipt of goods purchased either by hard copy, electronic mail,
or text message;

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(2)
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Provide refunds
for returns of new or unopened cosmetics made within thirty days of the
original purchase date; or

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(3)
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Provide
refunds, merchandise credits, or exchanges for returns of new or unopened
cosmetics made between thirty and sixty days after the original purchase date.

Any attempt by a purchaser to return goods to a
merchant that sells cosmetics, made within the time prescribed by this
subsection, shall preserve the purchaser's rights to relief under this
section.
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The purchaser's rights under
this section are cumulative to the remedies or penalties available under all
other laws of the State.

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(d)
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Subsection (c) shall not apply to merchants
that sell cosmetics if the merchant has:

����
(1)
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A class 4
retail dealer license granted by the liquor commission pursuant to section
281-31(e); or

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(2)
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A pharmacy on
their premises, permitted by the board of pharmacy pursuant to section 461-14.

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[
(c)
]
(e)
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Any merchant
not subject to subsection (c)

who does not accept the return of goods shall post conspicuous signs bearing
the words "All sales final", or "No returns for refunds,
merchandise credits, or exchanges", or words or phrases of similar import,
to inform customers that no return of goods shall be accepted.

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[
(d)
]
(f)
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Any merchant who limits the period during
which goods may be returned to less than sixty days after the date of purchase
or delivery shall post conspicuous signs informing purchasers of the limitation
of the period during which the return of goods shall be accepted.

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[
(e)
]
(g)
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Any merchant who excludes a certain category
or type of goods from its return policy shall post one or more conspicuous
signs identifying that type of goods.

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[
(f)
]
(h)
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Any merchant who excludes custom or specially
ordered goods from its return policy shall post conspicuous signs, or otherwise
notify the purchaser, with the purchaser's written acknowledgment, of the
return policy.
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For custom or specially
ordered goods, the policy may allow the merchant to accept the return of the
goods and to charge the purchaser for the cost of shipping if the charge is
disclosed prior to the purchase.

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[
(g)
]
(i)
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Any person engaged in the business of
offering goods for sale at retail who fails to post a conspicuous sign as
required by this section shall accept the return of goods from purchasers and
make refunds in accordance with subsection (h).

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[
(h)
]
(j)
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All merchants, except as provided in
subsection [
(c),
]
(e),
shall handle returns for refunds in the
following manner:

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(1)
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If payment was
made in cash, the refund shall be made in cash at the time of the return of
goods, except that if the amount to be returned exceeds $25, cash refunds may
be made by check issued within ten days of the date of the return;

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(2)
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If payment was
made by check, the refund shall be made in cash upon acceptance of the returned
goods by the merchant, or by check issued within ten days of the acceptance of
the returned goods by the merchant, except that if the purchaser's check has
not cleared the bank on which it was drawn, the refund may be delayed for no
more than ten days after the date the purchaser's check has cleared; provided
that the merchant shall have complied with this provision if the check is
mailed to the purchaser at the address provided by the purchaser within the
ten-day period;

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(3)
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If payment was
made by credit card, the refund shall be made by credit to the purchaser's
credit card account; provided that the merchant shall initiate the submittal of
the charge card credit memo or other appropriate documentation to the
merchant's financial institution within five banking business days after the
return of goods or, at the merchant's option, the refund may be made in cash at
the time of the return of the goods or by check issued and mailed within ten
days of the acceptance of the returned goods; or

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(4)
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If payment was
made by charging a credit account administered by the merchant, the refund
shall be made by credit to the purchaser's credit account initiated at the time
of the return of the goods.

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[
(i)
]
(k)
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All merchants, except as provided in
subsection [
(c),
]
(e),
shall handle returns for merchandise
credit in the following manner:

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(1)
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If the purchaser
does not select goods in exchange for the returned goods within thirty days of
the return, the merchant shall make a full refund to the purchaser in cash or
in accordance with subsection [
(h).
]
(j).
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The merchant shall not be required to return
cash in exchange for a merchandise credit issued pursuant to this paragraph if
the merchant posts a conspicuous sign to notify purchasers that the merchandise
credit cannot be turned into cash;

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(2)
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The merchandise
credit shall be valid for a minimum of two years; and

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(3)
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Before exchanging
the merchandise credit for cash or, in the case of a purchaser selecting goods
in exchange costing less than the amount of the merchandise credit, refunding
the difference in cash, the merchant may require proof of purchase and require the
surrender of the credit memo.

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[
(j)
]
(l)
�
All merchants, except as provided in
subsection [
(c),
]
(e),
shall handle returns for exchanges in the
following manner:

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(1)
�
If the exchange
involves an exchange for only size or color, the exchange shall be made without
regard to the full amount of payment; provided that the merchant may make an
appropriate adjustment if the differing size or color normally sells at a
different price; and

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(2)
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If the exchange
does not involve an exchange for only size or color, then if the full amount of
the payment for the goods received in exchange is less than the full amount of
the payment for the returned goods, the merchant shall issue a refund or merchandise
credit in the amount of the difference.

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[
(k)
]
(m)
�
In determining the full amount of the payment
for returns for reasons other than damaged or defective goods, a deduction for
repacking and transportation charges may be made from the full amount of the
payment, if the deduction is disclosed to the purchaser prior to the purchase.

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[
(l)
]
(n)
�
Any return policies adopted by the merchant
pursuant to this section that limits the purchaser's ability to obtain a refund
shall not apply if the goods were damaged or defective prior to the time of
sale, unless the merchant was aware of the damage or defect and notified the
purchaser of the damage or defect in writing prior to the time of sale.
�
No warranty policy adopted by a merchant in
the State shall require a purchaser to pay an additional fee to obtain a
repair, replacement, or refund for goods returned pursuant to the warranty.

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As used in this subsection,
"merchant in the State" means a merchant that:

����
(1)
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Is created under
the laws of the State, including but not limited to chapters 414, 414D, 415A,
425, 425E, or 428;

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(2)
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Is authorized to
transact business in the State; and

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(3)
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Possesses a
current, unexpired State of Hawaii general excise tax license.

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[
(m)
]
(o)
�
A merchant is not required to accept a return
if:

����
(1)
�
There is no proof
of purchase, by sales slips, receipts, or other evidence of purchase of the
goods returned;

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(2)
�
The purchaser has
retained the goods in excess of sixty days after the purchase;

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(3)
�
The goods have
been used or damaged after sale, or altered by the purchaser at the time of or
after the sale; or

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(4)
�
The goods are of a
type which are unsuitable for resale, pursuant to any applicable law.

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[
(n)
]
(p)
�
The following constitute unfair methods of
competition and unfair or deceptive acts or practices in the conduct of any
trade or commerce under section 480-2:

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(1)
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Any violation of
this section; and

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(2)
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Any act or policy
that causes a compromise of the purchaser's rights and protections established
by this section."

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SECTION 4.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 for the office of
consumer protection to obtain return and refund policy signs as required by
this Act.

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The sum appropriated shall be
expended by the department of commerce and consumer affairs for the purposes of
this Act.

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SECTION 5.
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Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2026;
provided that section 2 shall take effect on July 1, 2027.

INTRODUCED BY:

_____________________________

Report Title:

DCCA;
Unfair and Deceptive Practices; Cosmetics; Returns and Refunds; Appropriation

Description:

Requires
merchants that sell cosmetics to accept returns of new or unopened goods within
specified timeframes.
�
Clarifies the
definition of "conspicuous sign" and expands required placement of
return and refund policy signage.
�
Beginning
7/1/2027, requires merchants that receive three or more warning letters from
the Office of Consumer Protection for failure to post required signage to
display standardized return and refund policy signs provided by the Office.
�
Establishes exemptions for certain merchants.
�
Appropriates funds.

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not legislation or evidence of legislative intent.