Open Box vs Refurbished vs Used: What the FTC Actually Says

Here is the fact most shoppers never hear: a product someone bought and returned can, in the right conditions, go back on the shelf as new. In a 2006 advisory opinion, staff at the Federal Trade Commission told an electronics maker it could resell returns as new if they had never been switched on, were inspected, were complete, and carried the full new-product warranty. Anything that had actually been used was a different matter. Prior use has to be disclosed, even when the item has been brought back to "good as new".

Open box, refurbished and used are not grades of shine. They are three different promises. Read the promise, not the label.

So which is better: open box, refurbished or used? It depends less on the word and more on three things the word does not tell you: was it used, was it checked, and who stands behind it. This guide shows you how to find out.

What the FTC says about used goods

The FTC has a long paper trail on this. Its synopsis of Commission decisions on used and rebuilt merchandise, drawn from cases decided between 1942 and 1964, sets out two plain points:

1. Advertising something that is used, or made from reconditioned materials, without saying so in the advertisement is an unfair or deceptive practice.
2. Offering such an item for sale without a clear disclosure on the product, its box or wrapping, or otherwise where the shopper will see it at the point of sale, is also unfair or deceptive.

The 2006 opinion adds the reasoning behind it. It cites a 1969 FTC enforcement policy that found shoppers prefer new or unused products, so prior use is a fact that matters to the decision to buy. Under that policy, failing to disclose prior use was unlawful even when the returned item had been refurbished to "good as new". The same policy drew a line between items that had really been used and items that had only been inspected.

In the FTC documents we read, neither "open box" nor "refurbished" is given a fixed definition. That is why the same words can mean different things at different sellers. (This is general consumer information, not legal advice.)

Open box, refurbished, used: the side-by-side

A useful detail from the 2006 opinion: before its proposed change, the company in that case treated every opened return as used, inspected and serviced it, and sold it as refurbished with a 90-day limited warranty. So a "refurbished" label can sit on an item that was barely touched, and it can also sit on one that needed real repair. The label alone will not tell you which.

What does open box really mean?

"Open box" tells you one thing for certain: the seal was broken. Everything else is up to the seller. When you see it, ask:

• Was it used, or only opened? The FTC's own line runs between used and merely inspected. Ask which side this item is on.
• Is it complete? The 2006 opinion made "all of its requisite parts, components and manuals" one of the conditions for selling a return as new. Check for chargers, cables, remotes, mounting hardware and the manual.
• Was it inspected for damage? The same opinion warned that a returned product can be undamaged-looking and never switched on, yet still be damaged or missing parts.
• What warranty comes with it? If an open-box item carries the full new warranty, that is a good sign the seller is confident in it.

For electronics, a quick test goes a long way. Our guides to checking a used laptop's battery in two minutes and factory-resetting a smart device before you use it work just as well on open-box items.

Refurbished: who did the work, and who stands behind it?

"Refurbished" should mean something was checked and, where needed, fixed. But since the word has no single fixed meaning, different sellers do different amounts of work behind it. Three questions sort a good refurbished deal from a risky one:

1. Who refurbished it? The maker, the seller, or someone else? You want a name you can hold to the promise.
2. What was tested and replaced? A good seller can tell you. A vague answer is an answer too.
3. What is the warranty, in writing? The FTC's consumer advice (July 2023) says any written warranty must be available for you to read before you buy, in a shop or online. If you are told about a warranty out loud, ask for it in writing.

Used and "as is": your rights in plain words

Used items are where the biggest savings live, and where you take on the most risk. Two points from the FTC's warranty advice are worth knowing:

• Unwritten promises exist. State laws create "implied warranties" on nearly all purchases: that a product does its basic job, and that it suits a purpose the seller recommended it for. The FTC says some last as long as four years.
• "As is" changes that. Where state law allows, a seller can remove those implied promises by telling you in writing that there is no warranty, or by marking the item "as is". If you see "as is", assume that what you see is what you get.

That is why seeing a used item in person, switched on and working, is worth more than any description. In DC, Maryland and Virginia, buying from a local seller where you can inspect the item before you take it home is one of the simplest ways to cut the risk.

The 5-question checklist before you buy

Take this with you, whatever the label says:

1. Has it been used, or only opened?
2. Is everything in the box? Parts, cables, manual.
3. Has it been checked, and by whom?
4. What is the warranty, and can I read it now?
5. Is it sold "as is"? If so, test it before you pay.

Curious why so many returns end up for sale in the first place? Our article on where returned products go follows the trail. When you are ready to shop, browse Buy Now or the Categories page, and see our questions and answers page for how pickup and returns work on DealsDMV.

The bottom line

• A returned item that was never switched on, was inspected, is complete and carries the full new warranty can be sold as new, according to a 2006 FTC staff opinion.
• Anything really used must be disclosed as used, even after refurbishing. That has been the FTC's position for decades.
• "Open box" and "refurbished" have no single fixed meaning in the FTC papers we read, so ask what was done and get the warranty in writing.
• "As is" means the seller's unwritten promises may not apply. Test before you pay.

Know someone eyeing an open-box TV or a refurbished phone for the holidays? Send them this before they buy.