‘Tis the season for happy returns that may turn unhappy should you return too often.
The antithesis of Black Friday — the day after Thanksgiving — may well be today, when the blitz of post-Christmas merchandise returns begins.
Though retailers have a plethora of rules and nuances to their return policies, some restrictive and others not so bad, experts say the wise shopper will remember one key item: the original sales or gift receipt.
But don’t be surprised if you’re asked to produce a driver’s license or other government-issued identification as well.
In the effort to beat back fraud, many retailers now keep an eye on return frequency. Do it too much — the standard seems to be about five returns to the same retailer in a month before you’re red-flagged — and you can expect to be stuck with that nose-scrunching whatchamacallit your Aunt Tille gave you.
“Many retailers offer more lenient return policies during the holiday season to accommodate honest customers,” said Joseph LaRocca, National Retail Federation vice president of loss prevention. “But unfortunately, retailers must constantly balance the desire to take care of their customers with the undisputed fact that criminals are constantly looking to take advantage of return policies.”
Fraudulent post-holiday returns are expected to top $3.7 billion this year, up from $3.5 billion in 2006, according to the NRF.
Return fraud annually tops $17 billion, according to the Retail Equation, a California-based firm that fights return fraud. The bottom-line cost to consumers, according to one Texas A&M University study, is $225 a year for a family of four.
Nevertheless, retailers try to be nice rather than naughty to customers seeking refunds or exchanges. They do this by using computer software that keeps tabs on returns and who is making them.
One company, the Return Exchange, has devised a system that captures several pieces of information from your ID to determine whether you’ve returned items too frequently. Other systems on the market match sales to returns to ensure the transactions are legitimate.
Several retailers use the Return Exchange tracker, according to , including Sports Authority, KB Toys, Home Depot, Wal-Mart and Barnes & Noble.
Return fraud isn’t new. “Wardrobing” is probably the most common form. The industry term applies to someone who buys an item for a single use — a dress for a party or a big-screen television for the Super Bowl — and returns it shortly afterward. In the case of a dress, the consumer simply tucks the sales tag into the garment, dazzles the party, then returns the item, having rented it for free.
Another common method is receipt fraud, where a thief shows up with a duplicated or forged receipt and presents an item stolen from someplace else.
Or there’s the person who buys an item, keeps it, then comes back into the busy store with the original sales receipt, picks up an identical item from the shelf and heads straight to the return counter.
“These are much worse than unsavory individuals,” said Christopher Howes, president of the Colorado Retail Council. “Back in the day, people thought shoplifting was just some mischievous kids lifting candy bars. But organized retail crime is a $30 billion-a-year impact, and return fraud is a major component.”
There are other pitfalls to the holiday return. Each store’s return policy differs, and though returns are not a given, most establishments do offer them.
The policies often differ depending on the item. Electronics such as computers, digital cameras and opened goods typically face more restrictions than more traditional returns such as clothing and housewares.
Stores such as Best Buy and Circuit City usually limit returns to 14 days after purchase — it’s been stretched longer for holiday items — and will impose a 15 percent restocking fee if the item has been opened.
“Sometimes, it’s inconvenient,” Howes said, “but it’s a balance between making it easy to make a legitimate return and trying to get the ever-increasing segment of society that’s found a way to defraud the retailer.”
David Migoya: 303-954-1506 or dmigoya@denverpost.com
