In the states these laws and policies vary. 14 days is a reasonable amount of time for a return free of charge. A lot of companies in the states have offered free 30 day returns and people have (as they do) taken advantage of that. Target here has banned certain individuals from returns for up to a year because they were returning items on purpose in order to buy them cheaper in store as an open box item or what have you. Amazon used to let you return just about anything regardless of the time passed. But this has led to significant waste. They sell off returned items by the pallet load and it's basically a free for all grab bag scenario. And half of it ends up in a landfill anyway.

And to be perfectly honest what is under discussion isn't free returns. It's free shipping on returns.

All it would take to work is a change in legislation. So if I were you I'd be diligent about keeping an eye on it because there's a second side to living in a country quick to enact legislation.

Yes, it would. The law says that the cost of the return can be borne by the buyer. So making customers pay for the cost of return postage would not be against the law. The company is not required to provide an absolutely free return.