ATLANTA — As the final days of holiday shopping are near, retailers are already ramping up for a surge of returns. But what are the rules around getting that refund?
THE QUESTION
Are retailers legally required to give refunds or accept returns?
THE SOURCES
- Professor Douglas Bowman, Professor of Marketing at Emory University's Goizueta Business School
THE ANSWER
No, stores are not legally required to accept exchanges or give refunds except in cases where the product is defective or the item was misrepresented in some way.
WHAT WE FOUND
The Better Business Bureau answers the question clearly as part of its holiday return tips, writing on its website: "Stores are not legally required to accept exchanges or give refunds unless the merchandise was defective or misrepresented."
When it comes to state regulations, the Georgia Attorney General's website also confirms that there's no law on the books in Georgia requiring a business to provide a refund or accept returns.
"A business may set its own return policy and may offer consumers cash, in-store credit, exchanges or no adjustment at all," the article states.
The good news, Professor Doug Bowman said, is that most retailers have return rules in place with the customer in mind.
"On one hand, there's the formal legal issues, but on the other hand, it's making sure that the customers are happy and get a return," Bowman said. "You want positive 'word of mouth.' You really want to create a good customer experience."
But Bowman, among the experts, also cautions shoppers to pay attention to the details. Return policies vary, not only between stores but sometimes between customers.
"If I'm a member of your loyalty program, sometimes we'll waive the fee or have a different fee for a member of the program," Bowman said.
Those fees may include the price of restocking or shipping, Bowman said, adding that he's seeing a shift as some retailers eliminate the practice of free returns.
"I think we're moving into a new era, a new reality of modern shopping where we need to sort of recognize that there's a real cost to the returns or mailing back returns, and you're paying for it somewhere," Bowman said.
When it comes to the holiday season, the Better Business Bureau advises consumers to pay close attention to changes in return policy "even if you are familiar with the brand, as stores can change their policies whenever they want."
The BBB also recommends these tips to help returns run smoothly:
Get to know store policies. Before you make a purchase, find out if the store has a return policy and, if so, how it works. Understand that many retailers change their policies for the holiday season. If the store allows returns or exchanges, find out if you need to pay a restocking fee. Ask the seller if they offer cash refunds, exchanges, or only store credit. Store policies are usually posted at the check-out counter or printed on the back of receipts.
Understand online store return policies. If you are shopping online, search for the seller's return policy and read it through before clicking "buy." Find out if they accept returns or exchanges and who pays for the shipping when an item is returned. In some cases, you can save on shipping fees by returning an online purchase to the local brick-and-mortar store. See more of our tips for hassle-free returns for online purchases here.
Get the details on a product's warranty. Most electronics and home appliances come with warranties that are to be fulfilled by the manufacturer, not the retailer. Find out how the store handles returns and repairs if an item stops working or needs replacement parts. Will the retailer ship the item to the manufacturer for you? Or will you need to deal with the manufacturer directly? Knowing the answers will leave you well-prepared for any future issues.
Keep your receipt and packaging. Most stores will only accept returns and exchanges if you can present the item with its receipt and original packaging. Always include a gift receipt with items you give, and hold on to any gift receipts you receive.
Bring your ID. Many stores ask to see your ID when you return an item to avoid holiday return scams. Sometimes retailers require you to bring your ID and the original form of payment. If this is the policy of the store where your gift is from, you may need the assistance of the gift-giver in order to be reimbursed.
Make returns in a timely fashion. Almost all return policies are valid during a specific time period. Some stores modify their return period during the holidays, so don't risk missing your chance to make your return. Take the item back to the store without delay.
For more holiday tips, visit the BBB Holiday Tips page.
