Complicated Return Policies Mean More Unhappy Returns

Shoppers may face surprises at the returns counter

December 26, 2007

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Based on its annual return policy survey, ConsumerWorld.org says that shoppers may face some nasty surprises (and one pleasant one) now that Christmas is over as stores continue to enforce complicated and restrictive return policies, including checking a "blacklist" of "serial returners" prior to a refund, or by imposing costly restocking fees.

Some retailers including Sports Authority, 40% of Staples stores, Express, The Limited, and KB Toys 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. Some stores' posted policies do not warn shoppers of a cap on frequent returns.

Last year, Express and The Limited for the first time explicitly disclosed return limits, albeit on inconspicuous signs and receipt backs: five returns within any 90 day period with a receipt, or only up to $300 without a receipt.

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 2007, Costco tightened its return policy that had been open-ended for all but computers. It is now 90 days for TVs, computers, cameras, and other electronics.

• Sears maintains a broad 15% restocking fee introduced in 2005 on select home appliances, electronics, home improvements, household goods, lawn and garden equipment, sporting goods, and automotive items not returned unused with full packaging. Their return policy still appears mainly on 6" by 5" signs in tiny print, and on sales slip backs. This inconspicuous disclosure may not comply with state law.

• Circuit City and Best Buy's regular return period is 14 days (but see holiday chart) on cameras, camcorders, computers, monitors, and a few other items and they impose a 15% restocking fee if some of them have been opened. Circuit City's large yellow return policy signs with small white lettering are still difficult to read. New for 2007: Best Buy liberalized and simplified its holiday return policy, allowing returns on all goods until January 31. Previously, computers were excluded, some other items needed to returned by January 8, and still others by January 24.

• JC Penney requires special occasion dresses to be returned with the "return tag" still in place. (This thwarts shoppers from "wardrobing" for a one-time wearing.)

• Novel policies: Amazon deducts 20-50% for certain returns after 30 days. Buy.com's "Easy Returns" policy is over 1500 words long. Office Max says no returns on opened digital cameras but defective units will be exchanged.

• 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. "There is also no excuse for retailers' continued failure to clearly 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 Jan. 31 (most items shipped 11/01 through 12/31). 15% restocking fee on open computers. Additional rules may apply.

• Best Buy January 31 for purchases November 1 or later; 15% restocking fees on certain opened items.

• Circuit City January 25 most items; Jan. 8 for 14 day items including computers; some 15% restocking fees.

• Costco No deadline (but 90 days for TVs, computers, cameras, port. music players, cell, projectors)

• Kohl's No deadline (with receipt)

• Macys.com 180 days from purchase; 25% restocking fee on furniture.

• Marshalls January 5 (for purchases Oct. 28 - Dec. 5).

• Office Depot By January 25 for furniture and technology purchased November 15 or later.

• Overstock.com By January 10 for items purchased November 1 or later. Fees apply if opened or used.

• Sears 90 days; 30 days home electronics, mattresses; 15% restocking fee in many categories.

• Staples No deadline for office supplies. (January 6 for electronics & furniture bought since Nov. 23)

• TJ Maxx January 5 (for purchases Oct. 28 - Dec. 5).

• 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, collectibles, more). For online orders, postmark by January 4th.

• Wal-Mart 90 days (15 days [PCs, portable players], 30 days [cameras], or 45 days [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 conspicuous 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

Follow these tips to reduce the chances of frustration:

• 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.

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