Jim Winsett of the BBB. Q. My family usually receives Christmas gifts that require exchange or return. Last year I had an experience where the store would not refund money on the gift. I thought all retailers had to have a refund policy?
A. First, stores are not legally required to accept items for refunds, credits or exchanges, unless the merchandise is defective or misrepresented. However retailers must comply with their own stated return policy. Therefore, you are correct in that all retailers have a stated refund, return and exchange policy. Typically, that policy will be posted at the checkout area. Today, the policy is often printed on the receipt for the consumer. The Better Business Bureau serving Southeast Tennessee and Northwest Georgia receives many phone calls through the year asking questions about making returns and exchanges on gifts they received or purchases made during the holiday season.
There are laws to protect consumers: The Consumer Protection Act came into force on Jan. 16, 2003. The purpose of this act is to safeguard the rights of consumers in areas such as unfair trade practices, unfair contract terms and misleading and deceptive conduct.
The overall objective is to ensure that the marketplace is working well and that consumers' welfare is improved. But consumers also have responsibilities. BBB works for a trustworthy marketplace by maintaining standards for truthful advertising, investigating and exposing fraud against consumers and businesses.
BBB reminds consumers that in order to prevent confusion and frustration when making returns to overcrowded stores after the holidays, they should shop carefully and understand refund and exchange policies before making gift purchases or exchanges.
Here are facts regarding refunds and returns to make the process as easy as possible after the holidays:
The most important point for consumers to know is that a store is not obligated to accept items for refund, exchange or credit unless the item is defective or was misrepresented. Consumers should not confuse refund and exchange policies with written warranties, which are promises from manufacturers to repair or replace defective products, usually within certain time limits and under certain guidelines.
Some stores may allow only exchanges, which let the customer return one item for another. Other stores have more liberal policies, which allow returns for a credit or refund as well as an exchange.
Refund policies usually require that the goods be returned in new condition and within a specified period of time.
In most cases, a store will require a sales (or gift) receipt or some other evidence that the item was actually purchased at that store. Without a sales receipt, a shopper may not get back the full purchase price, because there is no proof that the item was not purchased on sale. This could result in a refund at a current sale price, not the full price actually paid.
Retailers often provide a proof of purchase slip, often called a gift receipt, to be placed in the gift box without revealing the purchase price. This will help a gift recipient who finds it necessary to exchange merchandise for a different size or color.
If a new product doesn't work or was misrepresented, a consumer may return it to the retailer. Don't dispose of your merchandise box or container as you might need it to return to the manufacturer or department store. Many stores will voluntarily replace defective products, even if the warranty comes from the manufacturer.
Consumers should not assume that merchandise could be returned unless specifically stated by the store, before making a purchase.
For some items, or even for all items in certain stores, the policy may be "all sales are final." Such a policy often pertains to goods that are on sale, merchandise sold at the end of the season, or personal items such as underwear, bathing suits or hats. Discount stores often have strict requirements on sales and sometimes make no exchanges or refunds.
Be an educated consumer and make the holidays a little less stressful; ask return policy questions before making your purchase.
Many purchases will be made shopping online; return policies may vary.
- Find out where to return the merchandise. The company website most often has the information posted on returns/refunds/ exchanges.
- Don't delay. There are usually time limits on returns.
- Expect to pay some fees. Usually return shipping charges, but there may also be restocking fees.
- Keep the original packaging. Keep receipts, confirmation numbers, etc.
- Be patient and persistent. The customer service reps are probably overrun with calls and doing their best.
Visit bbb.org to read more consumer tips.
Jim Winsett is president of the Better Business Bureau in Chattanooga.