No-refunds policies are incredibly popular in the coaching industry — and for good reason. Coaches have real expenses, real time commitments, and limited capacity. Refunding money after the work has started can feel unfair, stressful, and destabilizing to a growing business.
But here’s the truth most coaches never hear until it’s too late:
You cannot always legally have a no-refunds policy.
In this post, I’m breaking down the three scenarios where refunds are legally required, why consumer protection laws matter in coaching, and how to structure a refund policy that actually holds up when your payment processor gets involved.
Why Coaches Love No-Refunds Policies (And Why the Law Sometimes Disagrees)
From a business perspective, no-refunds policies make sense. Marketing costs, software subscriptions, team support, and your own time don’t disappear just because a client changes their mind.
There’s also the reality that in many coaching programs, you can’t simply “refill” a spot once someone exits.
Unfortunately, consumer protection laws don’t care about business convenience. They care about fairness, transparency, and informed consent — especially when selling to individuals rather than businesses.
First: Business Clients vs. Consumer Clients
If you are selling coaching programs to business entities — meaning the client name on the contract and payment is a business — you’re generally in the clear. You can maintain a strict no-refunds policy.
However, if you are selling to individuals (consumers), different rules apply. Consumer protection laws are governed by the client’s state — not yours — and those laws can override what you’d prefer to do as a business owner.
That distinction is everything.
Scenario #1: Selling Inside a Client’s Home
If you are physically present in someone’s home when you make the sale, the law requires that you offer a cooling-off period — typically 7 to 10 days, no questions asked.
This does not include phone calls or Zoom calls.
This applies only to in-home, face-to-face sales.
Scenario #2: Selling From a Physical Stage
If you sell a coaching program from a physical stage — such as at a live event, conference, or ballroom seminar — you must also offer a no-questions-asked refund window, usually 7 to 10 days.
Here’s the part most coaches miss:
That refund policy must be verbally disclosed from the stage, not just buried in writing.
If you’ve ever attended a high-pressure event pitch, there’s a good chance you’ve seen this requirement ignored.
Scenario #3: Selling to Consumers Online (The Most Common Situation)
Most online coaches sell to consumers across multiple states. Instead of trying to comply with every individual state law, the best practice is to follow the most consumer-protective standard.
In the U.S., that typically means offering a 7-day no-questions-asked refund policy for consumer clients.
This approach not only reduces legal risk — it often improves conversions, because buyers feel safer saying yes.
What a No-Questions-Asked Refund Actually Means
A legally sound refund policy should:
• Be time-limited (for example, 7 days)
• Be simple to exercise
• Not require homework, calls, or performance checks
• Be easy to request
• Be processed promptly through your payment processor
You are allowed to limit access during that refund window. For example, you don’t need to provide one-on-one coaching or full program delivery during those seven days.
Once the window closes, it is perfectly legal to enforce a strict no-refunds policy.
Why Overcomplicated Refund Policies Backfire
Most coaching disputes don’t go to court.
They go to credit card companies.
Payment processors don’t evaluate nuance. They don’t investigate intent. They don’t assess whether homework was completed “properly.”
If your refund policy includes conditions like:
• “Complete the modules”
• “Attend a call”
• “Demonstrate effort”
• “Refunds granted case-by-case”
You are almost guaranteeing that the processor will side with the client.
Refund policies must be objective, simple, and binary. Anything that requires judgment will be resolved against you.
Ambiguity Is the Enemy of Enforcement
Statements like:
• “We may issue refunds in cases of hardship”
• “Refunds considered individually”
• “Contact us to discuss options”
All weaken your legal position.
You can always choose to help a client privately. But your contract should not promise flexibility that undermines enforceability.
The Big Picture: Refund Policies Protect Everyone
Refund policies aren’t just legal tools — they’re client-filtering mechanisms.
Cooling-off periods reduce resentment, chargebacks, and forced participation. They help ensure that clients who stay actually want to be there.
That’s good for outcomes, reputation, and long-term sustainability.
What’s Next
This video closes out the Selling Legally series.
Next up, we’re moving into a topic most coaches overlook entirely:
Why coaches should seriously consider having a course — and the legal reasons behind it.
If you want help implementing refund policies, contracts, and systems that actually work in the real world, visit GoodAuthorityBlog.co for free and paid resources you can trust.
As always, clarity now prevents chaos later.
