The informal economy in Ghana is not simply a peripheral device of the nation's economic structure; it is its very foundation, particularly within the retail and services sectors.

Characterised by its lack of formal registration, regulation and taxation, includes a tremendous community of economic activities which are critical for the livelihoods of a majority of the urban population.

From the bustling open-air markets to the ever-present road-side kiosks or container, the informal retail sector is the primary source of goods and services for majority of Ghanaians.

For the sizable majority of Ghanaians, price is the maximum important determinant, making the affordability of the informal sector a powerful draw.

However, walk into almost any provision shore, electronics store, or roadside kiosk in Accra or Kumasi and you are likely to see the sticker: “Goods sold are not returnable” or its blunt dual, “No refunds.”

Traders, from glass-cased boutiques to table-top retailers, treat the phrase as an invisible force-field against complaining customers.

But is the notice worth the paper it is printed on? Ghanaian law answers with a polite but firm “No.”

The Culture of “No Refunds” The slogan thrives on three realities of Ghanaian retail:

• Cash-based, instant exchange: Most transactions are concluded in cash, immediately, and not using a written guarantee.

• Thin margins: Micro-retailers argue that accepting returns would wipe out little profits.
• Low consumer awareness: Buyers often assume the posted sign is the final word.

In the informal sector, which accounts for over 80% of employment, the practice is even severe. Goods displayed on the pavement change hands without receipts; caveat emptor (“buyer beware”) is handled as gospel.

Yet the same legal principles that bind Shoprite or Melcom bind the woman selling tomatoes at Makola and Kejetia.

What is the placement of the law?

The Sale of Goods Act, 1962 (Act 137) The cornerstone statute on sales contracts contains two sections that quietly demolish “no-refund” clauses:

• Section 8(1): The seller must deliver goods that correspond with the description or sample. If the pair of trousers labelled “size 38” is actually size 34, the buyer can reject the goods.
• Section 13(1): Implies a condition that goods are reasonably fit for the purpose made known to the seller. A blender that smokes the first time it is used can be returned; the sign on the counter cannot override this.
• Section 55: Measures damages for breach at what the seller could foresee. Consumer may sue for the purchase price plus foreseeable loss. Meaning, if a seller fails to deliver goods, and the consumer incurs additional expenses due to the delay, the consumer can sue for the purchase price plus foreseeable loss, such as the cost of getting a replacement.

In Tawiah v Ghana Civil Aviation Authority, the Supreme Court reiterated that failure to deliver what was promised entitles the buyer to damages.

One can also ask? Is the regulation actually relevant in the informal Sector?

Yes. Act 137 applies to every agreement of sale, whether sealed in a boardroom or sealed with a handshake at a traffic light. The challenge is enforcement;

• The problem of No receipts, a lot of shop rarely issues receipts. Without proof of buying, the buyer struggles to show a sales existed.
• Low awareness of the legal guidelines, both buyers and sellers often believe that municipal bye-laws rather than national sales law govern their dealings.

Yet the district courts have jurisdiction over claims not exceeding 5,000 cedis and mobile-money transaction messages are increasingly accepted as evidence of payment.

“As the saying goes, to each rule”, there may be an Exception. When “No Refunds” May be lawful

The law is not a blanket sword for every dissatisfied shopper. Courts will uphold “no-refund” clauses in three situations:

• Perishable goods returned after spoilage due to buyer’s delay, Buyer’s act breaks the causal chain of breach.
• Change of mind where no defect is alleged: Act 137 only covers defective or mis-described goods.
• Clear, fair notice agreed at the time of sale for non-defective items: Courts recognize freedom of contract, provided the clause is not unconscionable.

Here are some recommendations for consumers with a means to seek compensation, correction, or other forms of assistance to address their grievances.

• Gather your evidence: Receipt, mobile-money SMS, packaging, witness. Phone camera, WhatsApp voice note from vendor admitting defect.
• Demand repair, replacement, or refund in writing (even by text). Creates paper trail.
• You can also report to Ghana Standards Authority (GSA) or National Consumer Commission.
• Alternative dispute resolution: Contact Ghana Association of Traders (GUTA) or a district ADR centre. Faster and cheaper.

Finally, Public education campaigns by GSA and the Ministry of Trade on the real meaning of “No refunds.” Will help.

The sticker on the counter is not a shield; it is a scarecrow. Unless the buyer damaged the goods or sincerely changed her mind, Ghanaian law entitles the buyer to reject defective goods and demand his or her money back. receipt or no receipt, shop or roadside kiosk.

Until traders and consumers alike understand this, the notice “No refunds” will remain one of the country’s most popular and most legally fragile myths.