I had this happen with Lakeland I bought a bread knife and it proved not very satisfactory so I contacted them and the refunded me the full cost and said that need not return the knife.
I had a lamp/radio that failed to get good reception and had the same thing. In that case though the item turned out to be from some other European country (hadn't realised at the time of ordering) so obviously they weren't interested in having the duff item back. As a lamp it still worked so didn't have the heart to sling it, but it presently lies unused :-(
Yes, I have today. I sent for 2 sets of headphones but then decided to send one of them back. I got the same message, can have refund but they don't want the headphones back.