That usually means the gears in the retract mechanism are bad or jammed. You can try to gently push the lens in but don;t force it. Unfortunetly this means a repair at the depot so unless it is covered under warrenty you might want to look at a new camera instead. That is cheaper than the the repair will be.
There is a possibility that a bit of grit or debris has got stuck in the retraction mechanism or the lens has been knocked out of alignment.
The camera will have switches inside to tell it when the lens is retracted or extended and if it doesn't make contact within the expected time then it will give this error.
If the there is no warrantee or you dont mind voiding it then I would suggest carefully disassembling the camera and turning the retraction motor by hand to see where the problem is.
Please comment again if you discover anything.
Good luck
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