Fewer Happy Returns Expected as Retailers Tighten Return Policies

Boston (PRWEB) December 19, 2005

Shoppers may be in for some nasty surprises the day after Christmas as stores implement increasingly complicated and restrictive return policies, including checking a “blacklist” of “serial returners” prior to a refund, or by imposing unexpected restocking fees.

Some retailers including KB Toys, Sports Authority, Express, and some Staples stores use a computer database by The Return Exchange of Irvine, CA to track customer returns. (Home Depot, Wal-mart, Barnes & Noble, and others reportedly use their own proprietary systems.) Typically, stores swipe the shopper’s driver’s license when a return is being made, and if the store’s return limit is exceeded, the customer’s tendered return is denied. Most stores’ posted policies do not warn shoppers of a cap on frequent returns.

Other stores are using increasingly strict but conventional means to curb returns. Items such as computers, digital cameras, and opened goods may be subject to limited return rights, restocking fees, shortened return periods, or no refunds at all.

For example:

• In October, Sears became the first major department store to introduce a broad 15% restocking fee on select home appliances, electronics, home improvements, household goods, lawn and garden equipment, and automotive items not returned unused with full packaging. In two stores checked, the new policy appears mainly on 6” by 6” signs in tiny print, and on the back of sales receipts. Some checkouts have old or missing signs. This inconspicuous disclosure may not comply with state posting requirements.
• Circuit City has a restocking fee on certain open items, but neither the specific fee nor the product categories are disclosed on store signs or on the sales receipt. Both direct shoppers to circuitcity.com for details. Also, their primary posted sign uses small white type on a yellow background, making it illegible for many people.
• OfficeMax will not accept returns of opened digital cameras, software, etc., unless defective. Non-returnable categories vary online versus in-store.
• JC Penney requires special occasion dresses to be returned with the “return tag” still in place. (This thwarts shoppers from “renting” dresses for one-time wearing.)
• Amazon deducts 20-50% for certain returns after 30 days. SmartBargains.com will keep any goods returned twice after 30 days, and provide no credit for such items. Buy.com’s “Easy Returns” policy is over 1400 words; its holiday policy posted late.
• OfficeDepot.com only offers identical exchanges on laptops, digital cameras, PDAs, projectors, and handheld computers returned within 14 days.
• Best Buy requires computers to be returned within 14 days instead of 30, they are excluded from their holiday policy, and certain items have a 15% restocking fee.
• Target offers no returns without a receipt, but will search their system for one.

“There may be many unhappy returns this year if consumers are slapped with unexpected restocking fees, or find themselves erroneously placed on a returns blacklist,” said Edgar Dworsky, Founder of Consumer World®, the Internet's largest public service consumer resource guide ( http://www.consumerworld.org ). “There is also no excuse for retailers to fail to clearly and fully disclose their return policies to shoppers in advance.”

Some retailers relax their regular return deadlines at holiday time by extending the return period into January. Remarkably, in Consumer World’s spot check of in-store return policy signage, some stores failed to post the terms of their holiday policies. Nonetheless, some chains with generous regular or extended holiday return deadlines include:

• Amazon.com: January 31 (for most items shipped 11/01 through 12/31)

• Best Buy: January 8 (for camcorders, digital cameras, printers, monitors, projectors, radar detectors); Jan. 24 (all other items bought since Nov. 1 except computers)
• Buy.com: January 31 (for items purchased 11/01 through 12/31, certain exclusions apply)
• Circuit City:    January 25 most items (in stores, unspecified restocking fee on unspecified products)
• Costco: No deadline (except 6 months for computers)
• Kohl’s: No deadline (with receipt)
• OfficeMax: 14 days after Christmas
• Staples: No deadline for office supplies. (January 7 for tech. and furniture bought since Nov. 25)
• TJ Maxx/Marshall'S: January 7 (for purchases Oct. 30 - Dec. 7)
• Target: 90 days from purchase (15% restocking fee on portable electronics, digital cameras, camcorders; specially marked clearance items only qualify for current sale price)
• Toys R Us: 90 days (45 days for unopened electronics, video products)
• Wal-mart: 90 days most items (other items: 15 days (PCs), 30 (cameras), or 45 (PC accessories.))

Consumer rights vary from state to state with respect to product returns. Generally speaking, a store can set up any return policy it wants, whether it is "all sales final", "merchandise credit only", or "all returns in 30 days". Most states require the policy to be clearly disclosed to the buyer prior to purchase, usually by means of a sign. Some states do not consider a disclosure that only appears on the sales receipt to meet this requirement. It is not unreasonable, however, to require customers to provide a sales slip or gift receipt to establish where and when the item was purchased, and at what price.

Tips for Hassle-free Returns:

http://www.consumerworld.org/pages/returns.htm

• To improve your chances of getting a full refund, provide a sales slip or gift receipt, and return the item in new condition, unopened, and with all original packaging material. Returns without a receipt are subject to the retailer's posted return policy, which might result in receiving only a merchandise credit for the lowest price the item has sold for in recent weeks, or possibly no refund or exchange at all.
• If the item to be returned is defective, some states such as Massachusetts, require the store to give the consumer his/her choice of one of the three "R's": repair, replacement or refund, irrespective of the store's posted return policy.
• Consumers who have a problem returning a gift, should first contact the store manager or customer service department of the retailer. If a satisfactory resolution is not obtained, then a complaint can be filed with the state Attorney General's office or local consumer agency.

Consumer World®, launched in 1995, is a public service, non-commercial consumer resource guide with over 2000 links to everything "consumer" on the Internet. Edgar Dworsky, the founder of Consumer World, is a former Assistant Attorney General in the Consumer Protection and Anti-trust Division of the Massachusetts Attorney General's Office.        

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