Many retailers are clamping down on return policies

BY CYNTHIA MOOTHART

With the gluttony of the retail season winding down, it’s time to start shedding some weight, beginning with well-meaning but unwanted gifts found under the tree.

Like those New Year’s resolutions now before us, though, the best intentions easily can go awry. And in the case of returns it’s best to know what you’re up against before heading off to the store.

Many retailers are clamping down on return policies—particularly where high-end electronics, DVDs, CDs, software and video games are concerned. In the case of some major chains, including Best Buy and Circuit City, a restocking fee of up to 15 percent will be applied to big-ticket items such as computers and cameras if the packaging has been disturbed. Amazon.com will reduce by half the value of returned CDs, DVDs and software if unwrapped, or of books that show signs of use. And Barnes & Noble and CompUSA online won’t accept returns on CDs, DVDs, software and game cartridges if opened.

The obvious exception is if an item is defective, although even that doesn’t necessarily guarantee a happy return.

William McMullin of Mount Morris, Mich., fought for two years to get back the $250 restocking fee he was charged after returning a Sony laptop to Best Buy because it had a damaged mouse driver. He returned to the store two days after his purchase with the computer back in its original packaging and explained the problem. But the store manager held firm.

“It was a really big struggle,” McMullin said. “I sent letters to executives there and it didn’t get me anywhere. I kept complaining and they finally gave me $100 in the form of a gift card, which felt like a slap in the face. I don’t think [restocking fees are] a good idea even if a product isn’t defective.”

The goal of these stricter policies is to reduce the potential for fraud and to recoup losses when returned items with broken packaging are resold at discount. But these same policies easily can ensnare unknowing consumers because they vary widely among retailers and can change depending on whether an item was purchased at an outlet or online. Varying rules also can apply according to the type of purchase, and they may differ based on the time of year, whether a receipt is available, the method of payment, and, if the store uses a tracking system to monitor the return habits of customers, the number of items that are returned within a set period.

According to Consumer Reports, Home Depot, Barnes & Noble and Wal-Mart are among the major chains that now track customers’ return habits through propriety software. Starting in 2004, for instance, Wal-Mart customers who return more than three items without receipts within 45 days must get manager approval. But about a dozen others, including Staples, use the Return Exchange, a nationwide system that maintains return-tracking databases for participating stores. Customers who return too many items or for too much money are flagged and may be denied future returns. What passes for “too many” or “too much” varies according to each retailer and isn’t broadcast by Return Exchange or by participating stores, typically, but blacklisted consumers can get copies of their profiles if requested.
Gift cards aren’t necessarily much better. Although they allow a person to select his or her own merchandise, most stores won’t refund the value even if there’s nothing available that a consumer would want to buy.

In a survey of major retailers, Consumer Reports found that Costco, Nordstrom, L.L. Bean and Lands’ End have among the most liberal return policies, although time limits and shipping fees may still apply.

Return policies typically are posted at retail outlets and on company websites and very often are printed on the backs of receipts. If you’re still unsure, it’s best to speak with a manager for clarification. “They’re definitely something to pay attention to,” said Amanda Tate, a spokeswoman with Circuit City.

To make the easiest go of returns, around the holidays or any time, Consumer Reports suggests the following:

*Don’t wait. Several chains extend return deadlines around the holidays, but most still limit the amount of time they are accepted. And it can vary according to the type of item. Circuit City, for instance, allows returns within 30 days with proof of purchase except in the case of electronics, which must be brought back within two weeks. Some retailers, like Home Depot, will accept returns after the specified date but only for store credit. To avoid potential restocking fees or an outright refusal, don’t open or remove tags on items you think you might want to return.

*Don’t throw away receipts. Some retailers will accept returns without receipts, but very often these will result in store credits and could drastically reduce the value of the merchandise, since credits typically are given at the lowest sale price, very often an issue during post-holiday sale periods.

*Don’t argue. If you can’t get immediate satisfaction with the cashier or the customer-service representative, ask to speak to the manager, who may be the only one empowered to make exceptions to return rules.

*Don’t give up. If you think you’ve been treated unfairly, write to corporate headquarters and include the location of the store and the names of all those with whom you dealt. If that doesn’t resolve the issue, file a complaint with the Better Business Bureau. The office serving Minnesota can be reached at 651-699-1111, toll-free at 800-646-6222 or online at www.mnd.bbb.org/.

A last bit of advice: shop locally. Small retailers typically are more inclined to work with customers and often provide the highest level of service.