Its that time of the year again when we all go out and spend lots of money on Christmas presents for friends, family and work colleagues.

Halifax is offering some timely advice on what your legal rights are when it comes to Christmas shopping - be that on the high street, online or from a catalogue - and how to buy better in the first place.

Most of us have experienced that sinking feeling as we open up yet another pair of socks, a garish jumper or a box of lavender soaps. And the mile-long queue for the customer service desk is an all too familiar sight in the days following Christmas. But do we really know where we stand when it comes to claiming a refund or exchange for unwanted or faulty gifts?

Cheryl Millington, Head of Savings at Halifax, said, "It is anticipated that people will spend an average of £423 each this Christmas so it is definitely worthwhile taking a few minutes to check out your rights as a consumer."

"Christmas is an expensive enough time of the year as it is and most of us cannot really afford any costly mistakes so it is worth knowing your basic shopping rights so that it is only the wrapping paper that gets ripped off this year."

Refunds and exchanges - faulty goods

• Don't take any notice of signs that state that refunds and exchanges are not available - it is illegal for shops to claim this.
• If goods are faulty or not as described then the customer is entitled to a full refund.
• You do not have to agree to a replacement or repair if goods are returned promptly or within a reasonable period of time.
• You do not have to produce a receipt if goods are faulty however it is better to have one as evidence.
• Most shops allow 28 days to claim refunds or exchanges, although there is nothing in the law that defines what a reasonable length of time is. However you must not have kept the goods for longer than is reasonably necessary to discover the defect.

• If you take goods back to a seller just because you don't like or want them then you have no legal right to ask for your money back.
• Many stores will still offer you a refund, credit note or exchange in these circumstances, but they are actually doing more than is required by the law.
• You will almost always need a receipt in these circumstances - though a few stores will still offer credit notes or exchanges without one.
• Even with a receipt most stores will only offer an exchange and refund policy for a limited period, though this is often extended during the Christmas period.

• Goods must match their description and must be of satisfactory quality.
• Refunds on goods bought in these ways should also include any postage and packaging costs.

• Do your research! By finding out what your friends and relatives would like (rather than what you want to buy them) you could help avoid them returning the gift.
• Think very carefully before buying a gift that will be difficult or impossible to return (for example buying via ebay or a large bulky gift that would have to be delivered etc).
• When buying clothes make sure you know what size to buy.
• Check out each stores returns policy - many will not accept returns on underwear and pierced earrings for example.
• Find out how long the return/exchange period is and whether they offer refunds, exchanges or credit notes etc.
• Ask if stores will provide a gift receipt, which is a proof of purchase you can give to the person the present is for that does not state the price you have paid.
• If in doubt give vouchers instead!