Happy Holiday Returns ... Or Not

Dec. 15, 2005 — -- We all get them -- the oversized reindeer sweater from great Aunt Beatrice or the "gee, how nice, but what is it for?" gift from the well-meaning neighbor -- Christmas presents we can't wait to return on Dec. 26. But in some stores, returning gifts will be more difficult this holiday season.

Retailers say they're not trying to be the Grinch, but return fraud is costing them an estimated $16 billion a year, according to the National Retail Federation. So retailers are targeting those areas that cost them the most -- primarily electronics -- and setting some rigid rules for those returns.

For instance, at Best Buy, the return policy states gifts bought between Nov. 1 and Dec. 24, 2005, can be returned anytime prior to Jan. 24, 2006. In this case, apparently, it doesn't pay to shop early. And there are some exceptions. You only have 14 days to return big-ticket items such as computers, camcorders and digital cameras.

"Many consumers are going to have a surprise when they go to the return counter on Dec. 26," said Edgar Dworksy, a consumer attorney and founder of ConsumerWorld.org. Many stores have added a 15 percent restocking fee this year on select items. Dworsky called this fee "outrageous" because it's in the fine print that few customers read and is often vague.

For instance, Best Buy will charge a fee of 15 percent of the purchase price for any opened computers, camcorders or digital cameras and also will charge it if any of the accessories and/or manuals are missing.

Sears has become the first major department store to set a restocking fee not just on electronics, but home appliances, tools, lawn and garden merchandise, and automotive products. Dworsky said the bottom line is if you get a gift you know you're going to return, don't break the manufacturers seal or you could end up paying a restocking fee.

Some stores are beginning to flag repeat return customers. For instance, Wal-Mart automatically flags customers who have returned more than three items without a receipt in a 45-day period. The object is to crack down on those customers abusing the system, not to dissuade loyal customers.

Probably the retailer with the most liberal return policy is Nordstrom, where a customer doesn't even need a receipt to make a return. Nordstrom said it keeps track internally of repeat returners, but was tight-lipped about that list. A former Nordstrom's manager confirmed there is a "blacklist" of people Nordstrom believes abuse the system.

Every time they return something, the clerk swipes their drivers license at the cash register, and the next time their name pops up, a manager may be called to inform the customer that that's the last return they can make for a certain period.

All of us like to think we're perfect gift givers, but if someone must return a present you give, there are ways to make their return hassle-free.

It's the best way to insure many happy and easy returns during this holiday season.