Vermont
Vermont has no statute on service deposits; its Supreme Court asks whether a kept sum is reasonable in light of all the circumstances. A deposit has to meet 3 criteria: the loss from a no-show is hard to calculate, the amount is a reasonable estimate of likely damages, and it is meant only to compensate the shop for that loss, never as a penalty or as pressure to make the client show up. A deposit sized to what a missed appointment really costs, and described and used as compensation for that loss, fits that test; calling it non-refundable settles nothing.
Does a non-refundable deposit hold up in Vermont?
The law’s word for a set sum agreed in advance is liquidated damages.
The Vermont Supreme Court tests a liquidated damages clause by whether it is reasonable in light of all the circumstances, applying 3 criteria from New England Educational Training Service v. Silver Street Partnership: damages hard to calculate, a reasonable estimate of likely damages, and an intent solely to compensate. In Highgate Associates v. Merryfield, a landlord’s late fee of up to $30 a month failed where the foreseeable loss did not exceed $10 a month, and the landlord’s own staff called the fee an incentive to pay on time. The court looked past the lease calling the charges liquidated damages.
“The ultimate test for the validity of a liquidated damages clause is whether the clause is reasonable under the totality of the circumstances. ... the provision must be intended solely to compensate the nonbreaching party and not as a penalty for breach or as an incentive to perform.” Highgate Associates, Ltd. v. Merryfield, 157 Vt. 313, 597 A.2d 1280 (1991) · New England Educational Training Service, Inc. v. Silver Street Partnership, 156 Vt. 604, 595 A.2d 1341 (1991)
Showing your refund policy
Attorney General rule CP 106 makes it unfair and deceptive to refuse a cash refund on non-defective, unused goods bought at the store and returned within a reasonable time, unless the seller disclosed at the sale that no cash refund will be made, on a sign at the display, the register or the store entrance. Custom-made items are exempt. It covers goods, such as jewelry or aftercare products a shop sells, and not services, so it does not govern a tattoo deposit.
“for a seller to refuse to make a cash refund on cash sales ... of non-defective, unused goods purchased at a seller's place of business ... unless the seller discloses at the time of sale that no cash refund will be made on the goods” Vt. Consumer Protection Rule CP 106
Body-art rules and money
Nothing about deposits or refunds in Vermont’s statute on tattooists and body piercers (26 V.S.A. ch. 79) or the Office of Professional Regulation’s rules for tattooing and body piercing. The money in them is registration fees.
Read: 26 V.S.A. ch. 79 · Administrative Rules for Tattooing and Body Piercing (Office of Professional Regulation)
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.