Yep, I think they're meant to refund the cost of return postage if there's a fault with the item. That's certainly what happened with the last few items I've sent back. It really depends where you buy from though. Where possibly, I'll pay a few pounds more to buy from a retailer I know has good customer service. There are a few companies I've dealt with in the past that really have gone above and beyond when it comes to customer service.
Not necessarily relevant on this forum, but I had some stunning service from Novatech this year when my graphics card went bad. They sent pre-paid post labels to post it back, couriered me out a loaner card that was worth twice my original card, and refunded my money when they'd had the report back from their distributor. Not always the cheapest, but I buy as much as I can from them as I know they'll look after me.