Indiana
Indiana generally enforces a kept deposit when the damages from a no-show would be hard to work out and the amount fairly stands as compensation; a sum grossly out of proportion to the likely loss is a penalty. In Time Warner Entertainment Co. v. Whiteman, over late fees charged to household cable customers, the Indiana Supreme Court quoted those rules as reflecting much of today’s case law, and let the customers’ challenge go forward on evidence that the company’s real cost was far below its fee. Unclear wording is read against the business that wrote it, so a plain-worded policy sized to the shop’s real cost of an empty chair is on the firmest ground.
Does a non-refundable deposit hold up in Indiana?
The law’s word for a set sum agreed in advance is liquidated damages.
In Time Warner Entertainment Co. v. Whiteman, the Indiana Supreme Court quoted, as reflecting much of today’s case law, rules that weigh the facts, the parties’ intent and the reasonableness of the sum: a sum set in advance is generally enforceable where the damages from a breach would be uncertain and hard to work out, but only if it fairly stands as compensation, and a sum grossly disproportionate to the loss that may result is a penalty. Any ambiguity is read against the party that drafted the clause, and uncertainty about its meaning favors calling it a penalty. In that case, over late fees charged to household cable customers, evidence that the company’s real cost of a late payment was far below its fee was enough to let the customers’ challenge go forward.
“Liquidated damages provisions are generally enforceable where the nature of the agreement is such that when a breach occurs the resulting damages would be uncertain and difficult to ascertain. However, to be enforceable the stipulated sum must fairly be allowed as compensation for the breach.” Time Warner Entertainment Co. v. Whiteman, 802 N.E.2d 886 (Ind. 2004)
Showing your refund policy
No refund-policy disclosure statute was found. All of Indiana Code Title 24 (Trade Regulation; Consumer Sales and Credit, 2026 edition) was searched for “refund policy,” “return policy” and “cancellation policy” with no hit, and the Deceptive Consumer Sales Act’s list of deceptive acts carries no refund-posting rule.
Body-art rules and money
Nothing about deposits, refunds, cancellations or client prices in Indiana’s tattoo parlor rule, 410 IAC 1-5 (Sanitary Operation of Tattoo Parlors), all 42 active sections read. Its patron records rule asks for name, address, age, date, design, placement, artist and jewelry, and no payment record.
This page summarizes public law in plain language, with the source each point comes from, read at the source on 2026-09-23. It is not legal advice.