The common “Once Broken, Considered Sold” policy displayed in many retail stores is not a legal requirement that automatically forces customers to pay for items they accidentally damage, according to a Malaysian law firm.
In a post on Threads, Aimee & Zaim Arif clarified that the phrase is not contained in any written law, following questions from the public about whether customers must pay the full retail price for goods that are accidentally broken in a shop.
The firm explained that customers are not legally obliged to purchase a damaged item because no valid sales contract has been formed.
“Under contract law, a sale requires an offer, acceptance and an intention to create legal relations. Simply displaying goods on a shelf is only an invitation to treat,” the firm said.
However, it noted that customers may still be required to compensate the shop if the damage was caused by their negligence.
In such cases, any claim should be based on the shop’s actual financial loss, rather than the item’s retail selling price.
“If negligence is proven, the customer should only be liable for the item’s cost price, not the retail price. A shop should not profit from an accidental incident,” the firm explained.
The firm also said customers may not be liable, or their liability may be reduced, if the damage was partly caused by the shop’s own negligence, such as unstable shelving, narrow walkways or slippery floors.
It added that intentionally damaging goods could amount to a criminal offence under the Penal Code, and shop owners have the right to lodge a police report.
The same legal principle also applies to tester products, the firm said, as customers are not bound by a sales contract when using demonstration items, while retailers are deemed to have accepted the risks of making such products available for public use.
