That said, a Refund Policy is a legally binding document designed to stipulate the legal relationship between you and your customers regarding whether and how you will issue refunds. Companies that sell products online are sometimes required (depending on local laws and regulations) to disclose their product return and refund policies. In some jurisdictions, this is necessary to comply with consumer protection laws. It can also help you avoid lawsuits from customers who are dissatisfied with the products they purchased.