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Not Many Happy Returns

By James R. Hood
ConsumerAffairs.com

August 23, 2005

Returns • Survey Finds Consumers Wary about Holiday Returns • NYC Fines Retailers for Return & Restocking Fee Violations • Not Many Happy Returns • Retailers' Return Policies Getting Tougher

Not very long ago, consumers routinely returned retail items that didn't fit, didn't work quite right or just didn't look good next to the dog. Those days can now be experienced only in your memory's rear view mirror.

These days, retailers are being pressured by tight margins, intense competition, inept management and an epidemic of "shrinkage" (employee theft and shoplifting), not to mention the miserable quality of so many consumer products. They've thus adopted the attitude that you bought it, it's yours.

How bad is it? Pretty bad. ConsumerAffairs.com complaints from consumers about problems with returns, refunds and exchanges are running 11 percent ahead of last year. Even consumers who wind up with defective, mislabeled, non-existent or even recalled merchandise are finding themselves frustrated in their quest for satisfaction.

Category leaders -- those with the most complaints -- include Best Buy, Circuit City, Dell Computers, Sears, Wal-Mart and Target.

Companies with the fewest complaints? Well, no one can beat Lands End -- total number of complaints in any category: 0. If it weren't for Martha Stewart's products, Kmart would have a good record.

Damaged Merchandise

Tracey of Pasadena, Maryland, was planning to move when she bought a TV from Circuit City on March 26. She was told the packing crate was damaged. When she finally moved on August 12 and opened the box, she found the housing of the TV was cracked in two places.

"Not only that, the TV would not turn on or off. I called Circuit City to see if I could exchange it for the same model, and they told me, no I couldn't. Their return policy was 30 days no matter what the condition the set was in. I would not be so mad if the housing was cracked and the t.v. worked, but it just seems funny that no one will help me with this issue," Tracey said.

This sounds familiar to Carlos of North Bergen, NJ. On January 2, 2005, he bought a 40-gigabyte Apple iPod from Circuit City. It was an "open box" item which sold at a discounted price of $300, (retail is about $400).

"Before I purchased the item I was assured by the salesperson that although it is an open box item which was a customer return and has some cosmetic damage to it that it is working in 'like new' condition and that it also carries the same warranty as a factory sealed item," Carlos said in a complaint to ConsumerAffairs.com. "This item was not being sold or ever presented as an "AS IS" item."

Carlos was given a receipt which stated: "This product was a store display model or a customer return that has been previously opened and may have been serviced to ensure your satisfaction. It carries the same warranty coverage as a factory sealed item."

When Carlos began having trouble with the unit, he called Apple and was told that since there was a one-year warranty, he could send his iPod in and get a new one. But upon further checking, Apple decided the warranty one Carlos' unit had expired and he was out of luck.

"Now I had purchased this Ipod 6 months prior so how could my one-year warranty have expired? Well going by the serial number, Apple records show that the iPod was purchased back in April of 2004, therefore being that it was June of 2005 the warranty was now expired. I explained that my receipt clearly shows my purchase date of 01/02/2005 and that it clearly states that the used iPod I purchased comes with the same warranty as a factory sealed item," Carlos said.

Carlos waited for weeks while Apple bored into the problem.

"In the meantime I was in constant communication with Jason who is one of the store managers at Circuit City. Through this whole time he was telling me that if Apple could not take care of my problem he would take care of it and get me another used model," Carlos said.

"Eventually I received an email from Apple stating that they reviewed my request to have the purchase date changed but declined the request and did not give a reason why. At this point I went back to Jason at Circuit City and told him what happened and he offered to give me a store display 20 gigabyte iPod for $250."

"There must have been some kind of miscommunication because I thought he was exchanging my Ipod for a smaller model and refunding me the difference. It then turns out that he was trying to sell it to me on top of the $300 that I had already spent on this defective 40 gig Ipod. He even offered to sell me an open box 40 GB Ipod for $350 when I had just paid $300 for one 6 months prior."

"He told me that their was nothing he could do for me ... and that I should have purchased their City Advantage Protection Program."

Restocking Fee

Randall of Medford, Oregon, wasn't taking any chances. When he went to Circuit City looking for a scanner, he wanted to be sure he got something that worked.

"When I purchased the scanner, I asked about the store return policy for defective products, or products that could not be made to work properly. I was informed that the store had a 14-day return policy," he said.

"The scanner worked for about 5 minutes and then developed problems. I contacted Canon and after several emails and 1 1/2 hours on the phone with a Canon technician on August 13, 2005, it was determined that the scanner may be defective. The Canon tech offered to send another scanner. He told me that I could also take the scanner back to the store where I purchased it, if they would take it back."

"When I attempted to return the defective scanner to the customer service department of the store, I was informed that I could not get a full refund, that there was a 15 percent restocking fee. I had the scanner for one full day, it was defective, and I am expected to pay a $12 fee to return the defective product?"

"I contacted Circuit City Customer Support headquartered in Richmond, Virginia. I was quoted company policy and it was requested I contact the local Circuit City store manager. On August 16, 2005 I had a very brief telephone conversation with the local store manager who basically said this is company policy and that I would not receive a full refund," Randall said.

The Wrong Merchandise

Wilson of Bayside, New York, had an even more upsetting encounter when he tried to return an Internet router to Best Buy.

"I went to Best Buy store #483, explained to the top manager at the customer service that product stated on the outside of the box was different from the inside and wanted to exchange it for the correct product," Wilson said. "Manager tells me that he cannot accept the return because of store policy and after a few minutes of arguing he tells me to 'get the hell out of my face' and forcefully pushes the box into me."

"At that point I called 911 with my personal cell phone and while speaking with an 911 dispatcher another Best Buy employee whose name tag says 'Tom' intervenes and grabs my receipt for the product out of my hand and tears it in 3 pieces. Tom starts telling me I have to leave the store right now while refusing to give the wireless router and receipt back to me."

"I told him I'm not leaving without my receipt and product that I purchased so he puts me into a head lock while several more employee comes and helps him push me into a room ... they locked me in there alone with Tom. Tom tells me that the room has no surveillance cameras and that he's going to 'beat the f*** out of me.'"

After two more calls to 911, two police officers came and released Wilson but said they could do nothing because it was a civil matter.

Although he had not done so at the time of his complaint to ConsumerAffairs.com, Wilson would be well within his rights to seek legal counsel and sue the store and the individual employee who allegedly assaulted him and held him against his will, an act which can be treated as abduction -- a very serious crime -- in most states.

Merchandise That Doesn't Work

Jeremy, a dentist, had a similar, though not quite as violent, run-in with the Best Bay store in Evanston, Illinois.

"I purchased a lap top with warranty for use as a server to be set up in my office with wireless networking against my current lap top as a work station. I was told there would be no problems," Jeremy said. In fact, there were numerous problems and after several unsuccessful attempts to get the system working, he gave up.

"I went into the store to return the whole package. They informed me there would be a 15 percent restocking fee and the costs of the networking in the office was to be charged as well as the software loading for anti-spy package on the new computer."

"I told them it wasn't fair, that they were engaged to set up the network which they did, but backwards; the office program that they were to check on was no longer functioning and they promised to return the next day and never showed up," he said.

"The Best Buy person at returns and the subsequent manager told me that it made no difference to them whether or not the network installation worked or why I was returning the lap top, I still had to pay for the service and the restcking fee. This was almost $400. I was incredulous."

"I repeated that they failed to set up the network and then failed to show up as promised to correct the situation. He said he didn't care, that I still have to pay anyways."

No Merchandise At All

There aren't many Wal-Marts in New York but Phyllis of Brooklyn found one and loaded up on merchandise, including a camera memory card, priced at $39.96.

"When I arrived home I realized that the package had been slit and that there was no memory card in the plastic package. I then immediately called the number on the receipt and asked to speak with a manager. I spoke with a woman named Diane and she said that the return of the empty package would not be an issue and that it could be returned later on that day," Phyllis said.

Phyllis returned to the store later that evening and, with her husband, made her way to the customer service counter.

"The woman at customer service left me in the line and said that she went to check something. She then made some phone call and said she would check the tape and told me to wait for the assistant manager Ralph," she said.

"She left my husband and I standing and waiting for over 45 minutes. I waited very patiently but was somewhat agitated at the way I was tossed aside. Finally a young man came over and said he had to review the tape. Ralph then became annoyed when my husband asked how long this would take because we had already waited nearly an hour and my children were waiting in the car."

"Ralph then became angered and unprofessional. He accused us of being thieves and called the police without reviewing the so-called tape."

Another manager appeared, apologized and told Phyllis to come back in the morning.

"The police then arrived and said that I should leave. As a matter of fact they also went to deal with a two other cases in the customer service department that were being resolved poorly," Phyllis said. "I was called a liar, had the police escort me out of the store and am out of a $40 memory card that I paid for."

Recalled Merchandise

Kathy of Junction City, Kansas, was visiting ConsumerAffairs.com when she found a recall notice for a Leoch brand E-scooter model.

"I purchased one in December 2003," Kathy said. "The recall was issued in September of 2004 by the CPSC...it instructs consumers to stop using the scooters and return them to any Target store for a full refund."

So, following instructions, Kathy contacted the Target store in Manhattan, Kansas.

"They refused to take it back stating they have no information about this and that it is 'too old'. My son was still riding this scooter."

"Is there a "statute of limitations" on refunds of recalled products?" Kathy asked.

The answer is no, there is no statute of limitations and Kathy has an absolute right to a full refund, no questions asked. She should make a copy of the recall notice on our Web site or on the U.S. Consumer Product Safety Commission site and take it and the scooter with her to the store. If the store does not issue a full refund on the spot, Kathy should file a complaint with the CPSC and contact the Kansas Attorney General's office.

A Target spokesman, however, says that it "was an unfortunate and unintentional mistake on our part." We furnished Target with the details of Kathy's complaint and spokesman Daniel Becchetti said Target would "go through our guest relations department and help them return the product."

What Can You Do?

Good question. As retailers, particularly major chains, increasingly take the attitude that their customers are little more than thieves, consumers are hard-pressed to defend themselves.

There are a few things you can do:

• Don't buy from stores that have earned a bad reputation. Check ConsumerAffairs.com and other Web sites that let consumers tell their stories.

• When making a purchase, ask for a copy of the store's refund policy for that type of merchandise in writing. Many larger stores now have different return/refund policies for different types of merchandise so be sure you get the right one. If the store will not provide a written refund policy, go elsewhere.

• Insist on opening the merchandise and inspecting it before leaving the store.

• Keep copies of your receipts, warranties, etc.

• If you have an American Express card, use it. If the merchandise is damaged or defective, dispute the charge. Though far from perfect, American Express is generally regarded as the most supportive of consumers who dispute a charge.

• Remain calm. If store employees give you a hard time, leave. Don't get into a shouting match. Instead, go home, compose yourself and write a calm, factual letter to the store manager explaining what happened. Keep a copy. If the store does nothing, contact your state Attorney General, your local consumer protection agency and file complaints with ConsumerAffairs.com and other consumer Web sites. Notify your credit card company that you want to dispute the charge.

Perhaps the best preventive policy in any consumer transaction is to do a little research ahead of time. Find out what can go wrong and be ready for it. Ask yourself if the product or service is something you really need. It you can do without it, you'll save money and avoid frustration.

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