CONSUMER ALERT

MIKE COX
 ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading or deceptive business practices, and to provide information and guidance on other issues of concern.

  "AVOIDING UNHAPPY RETURNS"

Returning Merchandise Bought On- or Offline

Consumers wishing to return holiday gifts to retail stores and online merchants may avoid surprises by taking a little extra time to understand the return process.

If a retailer has a no-return policy, then the law does not require the store to accept returns of items that are as represented and are free of defects. Many businesses, however, have chosen to allow consumers to return unwanted merchandise. And if a store modifies a long-established return policy merchants should clearly, accurately, and completely communicate their return policies to the consumer before the sale takes place.

Even if a merchant clearly discloses its no-return policy, there remain certain situations in which a merchant must allow the consumer to return merchandise.  I Changed My Mind -- Can I Cancel This Contract?  If the merchandise is defective or not as represented, the consumer may return the item. Other examples include sales solicited at a consumer's home or sales made after a consumer received a gift to attend the company's sales promotion.

As the 2001 holiday season has seen deep discounting and a sharp increase in online sales, some traditional retail stores have tightened their return policies.

Shoppers accustomed to returning items purchased in Michigan stores may not only find stricter return policies at the stores but may face unfamiliar obstacles when attempting to return merchandise bought over the internet.  The law that applies to returns generally covers both online and offline sales.

Before You Return an Item

The best way to avoid an unhappy return experience - wherever you shop - is to find out what the merchant's return policy is before you make a purchase.  For example, many retailers impose a time limit on returns and require a receipt, or gift receipt even if the item is a store brand.  Stores may accept returns for in-store credit but not allow refunds.  The tips listed below regarding online sales generally apply to "real world" sales as well.

You may wish to review our other advisories, Internet Security Advisory -- Patch The Hole In Your Cookie Jar, Online Shopping Safety Tips, and Credit Cards (Did I Charge That).

With regard to returns, online shoppers should scrutinize a merchant’s web site to determine whether returns are allowed and, if so, what a consumer must do to return an item. If the information is not posted, contact the merchant and ask for the information in writing. In either case, be sure to print and retain the information (along with all receipts, packing slips, and other documentation). In particular, you should find out:

• Does the merchant charge a "restocking fee" to accept returns? Many online merchants charge a substantial percentage of the purchase price to accept a return.
• Are you responsible for paying shipping and handling charges if you return an item? These charges can be quite expensive, particularly if insurance is required.
• Will the merchant charge an "open box" fee or simply refuse to accept items after the package has been opened? Such restrictions are common for purchases of software, videos, and computer equipment.
• Will you receive a refund for the item returned, or will the merchant only give you a credit toward future purchases?
• Will the online business require you to obtain any sort of advance permission before returning an item? Many merchants require consumers to contact the company and obtain a return merchandise authorization (or "RMA") number or other instructions before returning goods. Some merchants may have special shipping instructions.
• Is your right to return an item limited to a very short time period after purchase? Many online merchants have very short return periods - 14 days is not unusual.
• If the merchant selling on-line also operates a retail store in your area, can you simply return an item that you purchased on-line to the store? Many such retailers, sometimes called "click-and-mortar" merchants, offer consumers this convenience. But be sure to inquire about the details of a particular merchant's policy.
• Does the merchant guarantee satisfaction or your money back? While some online merchants do not offer guarantees or allow returns, many do. Even if such a guarantee is offered, there may be conditions attached, such as time limitations or payment of shipping costs.

Steps You Can Take If You Are Having Trouble Returning Merchandise

If you have received goods that are defective or not as represented, but the merchant refuses to allow you to return the merchandise, or if you discover that the merchant is not honoring its return policy, you have a legitimate complaint. If you paid by credit card, you may wish to contact your credit card company, dispute the charges, and request a "charge back.”

You may also file a complaint with the Attorney General's Consumer Protection Division (Consumer Complaint Form). Be sure to include copies of all documentation, including packing slips, printed copies of online disclosures, receipts, etc., with your complaint.

Consumer Protection Division  
PO Box 30213

Lansing, MI  48909

Toll Free 1-877-765-8388