The shop owner is responsible to creating and maintaining up to date policies for the shop. You can find these policies under:
Shop Settings > Shop Info
The click on Shop Polices
Discreet Shipping:
Check the box if you provide discreet shipping packaging with shipping labels that don't identify the name of the store or the items as adult products. Checking this box unlocks the DISCREET SHIPPING icon on your product listings.
Shop Policies:
This will appear on your shop profile page and should include any specific cancellation policies you might have, frequently asked questions or any other information you think would be important to customers.
Return Policy:
This is where you will create a default Shop Return Policy. For example if all your items are adult toys and you don't accept any returns then you would explain in this location that "Due to the nature of adult toys you do not allow any customer returns of products".
When you create listings for your adult toys you would choose the Shop Default Return Policy for those listings but if you create a listing for a different type of item which you would allow to be returned then in that section under that specific product listing, you would create the custom Return Policy for that listing.