Jim Winsett of the BBB. Q: I tried returning an item purchased at one store because I found it in the color I really wanted at another store. Then I find out that I could not return the item. Are all retail stores required to offer a refund policy?
A: You might not like the color, fit or style of a sweater. You may already have the DVD you received as a gift. Sometimes a simple exchange will do the trick. However, Better Business Bureau serving Southeast Tennessee and Northwest Georgia says givers and recipients should know retailers' terms and conditions for exchanges, store credits and refunds. Additionally, laws are in place to protect consumers from misrepresented or defective products.
December and January are peak periods for gift returns. Merchandise return policies vary from one retailer to the next, so you can save time and prevent headaches by understanding stores' terms and conditions before waiting in line at the customer service counter.
Retailers are not obliged to accept returned items, but they do because they don't want to alienate existing and potentially new customers. Some items are not eligible for return for health reasons. Others usually not accepted for return include downloadable or open software, DVDs and prepaid phone cards.
A policy is often printed in plain sight such as on a sales receipt or posted at the Point of Sale (POS). If you do not see the policy, ask up front. Understand the policy of the store before you pay for the item. Keep your receipt and any packaging the item came in.
Different policies mean different things. Ask up front and do your part when returning a purchase in order to have a successful return experience.
Some retailers have tightened their return policies, especially if the merchandise does not have an accompanying receipt. Survey's estimate more than one in four gift givers do not enclose the original proof of purchase. You may be asked to show some sort of identification, because nine out of 10 retailers report losses because of the return of stolen merchandise. If you are embarrassed to return a holiday gift, consider the results of a National Retail Federation report that says one out of three recipients returned at least one item during the last holiday season.
Tips to simplify gift returns:
» Check returns terms and conditions - by law this information must be posted prominently in stores as well as on sellers' websites. You will not always be eligible for a refund - without a receipt; some stores may allow an exchange or give you an in-store credit rather than cash.
» Don't open it if you don't want it - this applies most to electronic items and other gifts that are packaged in hard shell plastic cases. You can get hit with a re-stocking fee ranging from a small percentage to as much as 50 percent of an item's value. These fees are charged because with damaged packaging, the merchant cannot resell it as new. Don't forget to include manuals, cables or other accessories that were included.
» Remember shipping costs - whether you're shopping online for someone else or yourself shipping can be an added expense. If you buy an item from a retailer's online catalogue, find out whether the gift can be returned directly to a local store to avoid having to pay shipping charges.
» Another popular option for unwanted gifts is to re-gift them for next year. You may not want an itchy scarf or weird paper weight, but who is to say a friend, colleague or relative would not enjoy them.
Other terms you should know and understand:
» An exchange - When the store's policy states that you may exchange your purchase, it means the item may be returned to the store and another similar item taken in its place. This does not apply to "all sales final" policies or sale items unless stated.
» A return for credit - means the store will provide the customer with a store credit for the value of the purchased item. You may then apply that amount to the purchase of any other item in the same store. You may use the credit the day you return the item or at a later date. Ask if the credit has an expiration date.
» A refund policy - states that the item can be returned for your money back, and most of the time has stipulations such as receipt required, a time limit to get the refund or that items must be new and in original packaging. A refund is voluntary.
» A restocking fee - A restocking fee is a fee assessed for the time the item was out of the store and unable to be sold to someone else. This is usually applied to specialty items or hard to find items and is one of the most complained about return policies. Inquire if there is a restocking fee before making your purchase, if you're not willing to pay it and there is a chance the item will be returned you may want to consider buying something else.
Retailers may adopt some, none, or all of the mentioned return policies. Health regulations prohibit the return of certain merchandise such as hats, bathing suits, or other intimate apparel.
Product warranties are often confused with store return policies. Products often come with stated or implied warranties from their manufacturer. Federal law requires that warranties be available for you to read before you buy a product, even when you're shopping by catalog or online. Understand the warranty before purchasing the item and read it before returning a defective product to the retailer. Some merchants will return the product for you as a customer service; however, you may have to return the item directly to the manufacturer or a service center.
Good advice is to keep all receipts and packaging until you are sure the purchase will not be returned. Simply knowing a store's refund and exchange policies before making a purchase can save lots of frustration and help you avoid standing in long lines after the holidays.
Jim Winsett is president of the Better Business Bureau in Chattanooga.