How Do I Offer a Guarantee for My Small Business Without Getting in Trouble?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

Only advertise a guarantee you will honor, and put its terms in writing: what it covers, how long it lasts, what’s excluded, and how a customer makes a claim. If you say “satisfaction guaranteed” or “money back,” the Federal Trade Commission (FTC) expects a full refund on request, unless you clearly state the limits. Tell customers where to find the full terms.

What this means

A guarantee is a promise about your work or product, usually that you’ll fix it, redo it, or refund it if something goes wrong. A warranty is a written promise about how long a product or job will hold up (see 11.1.9 Warranty). People use the words loosely, so your written terms are what matter.

The FTC’s guides on advertising guarantees say:

“Satisfaction guaranteed” and “money back” should be used only if you refund the full price when asked. Any limits, like a 30 day window, must be stated clearly and prominently.
“Lifetime” must say whose lifetime or what lifetime it means, such as for as long as the original buyer owns the home.
Ads should tell customers how to get the full terms.
You must actually perform. Don’t advertise a guarantee you don’t promptly and fully honor.

Made-up example: Brightline Window Washing says “100% satisfaction guaranteed.” Its written terms say: “If you’re not happy with any window, call within 48 hours and we’ll come back and reclean it free. If we still can’t make it right, we’ll refund that visit.” The ad links to that page. The promise is clear, limited, and something the crew can keep.

Why it matters

The FTC Act bans deceptive ads, and a guarantee you won’t honor is a deceptive claim.
State consumer laws apply too, and some trades, like home improvement, have extra rules about written warranties. Check with your state attorney general and licensing board.
Unclear guarantees cause fights. If the terms aren’t written, the customer’s memory of what you said wins the argument in public.
Guarantees cost money. Every redo and refund comes out of your margin, so plan for it (see 7.8.7 Warranty, Refund, and Bad Debt Costs).

Who this applies to

Any business that advertises a guarantee, warranty, “money back” offer, or “we’ll make it right” promise. If you don’t offer one, make sure no ad, profile, or staff member suggests that you do.

How to do it

Decide what you can truly promise. Base it on your costs and capacity, not on what competitors say.
Write the terms: what’s covered, what’s not, how long it lasts, and what you’ll do (redo, repair, refund).
Write the claim process: who to contact, how, and by when. Say what proof you need, like photos.
Use the right words. Only say “money back” or “satisfaction guaranteed” if you’ll refund in full, or state the limits right next to the phrase.
Define “lifetime” if you use the word.
Publish the full terms on your website and link to them from ads and your GBP website link where it makes sense.
Match your contract to the advertised guarantee (see 11.1.1 Service Agreement).
Train your team on the exact terms so nobody promises more on the phone.
Track every claim and how you handled it.

What proof to keep

The written guarantee, with a version date
Dated screenshots of every ad and page that mentions it
A claim log: date, customer, issue, what you did, cost
Signed contracts that include the guarantee terms
Old versions of the guarantee, so you know what each past customer was promised

Common mistakes

“Satisfaction guaranteed” with no refund, only a redo. Say “redo guarantee” instead.
“Lifetime warranty” with no definition.
Exclusions buried in fine print or only in the contract the customer sees after paying.
Changing the terms and applying the new terms to past customers.
Sales staff promising extras that aren’t in writing.
No claim deadline, so you’re on the hook for years.

When to get help from a pro

Attorney: to review your guarantee and warranty wording, especially for home improvement, auto work, or products. Questions to ask:

Does my wording create obligations I didn’t intend?
Does my state or trade have rules for written warranties or guarantees?
How should my guarantee and my contract work together?

Bill’s note

[Bill: add a short note. For example, whether SiteSmarty offers a guarantee and why you chose those terms, or a guarantee you’ve seen backfire for a client.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: writing the SiteSmarty guarantee terms and claim process]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the published guarantee page]
[Result so far:]

Questions people ask

Can I say “satisfaction guaranteed”? Yes, if you’ll give a full refund when asked, or if you clearly state the limits next to the phrase.

Is a guarantee the same as a warranty? Not always. A guarantee is often about satisfaction or a fix. A warranty is usually about how long something lasts. Your written terms decide what you owe.

Do I need my guarantee in writing? You should. Written terms protect you and the customer, and the FTC expects ads to tell customers how to get the details.

What does “lifetime” have to mean? You must say whose lifetime or what time period it covers.

Audit check

Question: Is every advertised guarantee in writing, with clear terms, exclusions, and a claim process, and is it honored?
Pass looks like: One written guarantee, linked from ads, matched in contracts, with a claim log showing claims handled.
Fail looks like: “Money back” with no refunds, undefined “lifetime,” or staff promising terms that aren’t written.
Evidence to collect: Guarantee document, ad screenshots, contracts, claim log.

Where this fits

Do this first: 11.3.2 Pricing Disclosures, 11.1.8 Refund Policy, 11.1.9 Warranty

Do this next: 11.3.5 Fake Review Rules

Sources

Electronic Code of Federal Regulations, 16 CFR Part 239, "Guides for the Advertising of Warranties and Guarantees" (checked October 17, 2026)
Federal Trade Commission, "Advertising FAQ's: A Guide for Small Business" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.