Buyer’s Market

Did you hear the one about the couple who tried returning a tire to a shop they’d frequented in the past, only to find in its place a Nordstrom? The department store took “back” the tire.

It’s the stuff of retail lore and the kind of anecdote that has made Nordstrom’s liberal return policy legend. The company does, at least officially, require a register receipt and that the original hang tags still be attached for a full refund of the purchase price, but the tire tale is repeatedly cited as a business school textbook case among even Nordstrom’s competitors. And though no one could recall actually reading about the tire return in any book, stories like these influence customer service practices and expectations among retailers and consumers alike.

Returns and exchanges are, after all, integral to doing business. Not happy? Take it back. Increasingly stores brandish that guarantee in a saturated marketplace. Consumers respond enthusiastically by returning 10% of what they buy from department stores and specialty chains, according to a 1996 survey conducted by the University of Southern Carolina for the National Retail Federation.

Return policies are even fodder for ad campaigns. Drug stores such as Sav-on and Rite Aid compete for the billions of dollars spent annually on cosmetics by touting return rules for lipstick and other products. Don’t be too impressed: Most cosmetic counters at department stores also take back that eye shadow that once seen in your bathroom mirror causes you to question your taste and sanity. Like the drugstores, the product has to be in reasonable condition and not half-used.

The ultimate in return policies promises satisfaction guaranteed or your money back. Posted on the doors and throughout Sears stores, it’s a century-old assurance. While a receipt is preferred by Sears, lack of one won’t keep you from collecting. Without it, however, you can only expect a refund of the most recent sale price.

A similar guarantee is offered at Neiman Marcus, which also stands behind its goods and will “do whatever it takes to make the customer happy,” a representative says.

At Macy’s 101 Western stores, the policy is to accept returns for a refund within 30 days of the purchase date. Well, that is as long as the merchandise isn’t tailored clothing, certain sportswear, women’s designer togs, branded denim, fine jewelry, sunglasses or designer handbags, among other exceptions. Clearance items are returnable, but if you forget your receipt for any merchandise, expect a refund of the lowest price within the last 30 days and expect it in credit on your Macy’s card or as a certificate.

Last spring, Old Navy stores revised their policy to customers’ benefit. The store will refund the receipt amount and not just the current selling price, as previously offered. A merchandise credit is given on returns within 30 days of the purchase date with a receipt and those made after 30 days without one. At its sister chain, the Gap, sales associates will “always take anything back,” says a representative. But after 14 days, credit is given only for the current selling price. If the item is returned within the first two weeks with a receipt, the purchase price is refunded regardless of later reductions.

At Express for women and Structure for men, which also say “no sale is ever final,” the return policies are the same--except in one area: On price adjustments for merchandise that is marked down after a purchase, the original sales receipt amount is paid out when the return is within 14 days at Express, within 30 days at Structure. Apparently Limited Inc., which owns both chains, figures men need more time.

Retailers are not required to give refunds, according to the Los Angeles County Department of Consumer Affairs.

“It’s a privilege, not a right,” says director Pastor Herrera. Stores can set their own policies, including electing not to give refunds at all. And it is the consumer’s responsibility to know the policy before making a purchase, “though there are rights protecting the consumer,” Herrera says.

State Civil Code Section 1723 requires retailers to conspicuously display policies if they do not allow a refund, exchange or store credit within seven days of purchase with a register receipt. Policies must be displayed in at least one of the following ways: posting a sign at the register or at each public entrance, or spelling it out on hang tags or order forms. The display must include any conditions governing returns.

The law allows exceptions for some sales, including perishable goods such as food and plants; goods marked “as is,” “all sales final” or with similar language; goods not returned with original packages; those that cannot be resold due to health considerations; goods used or damaged after purchase; and customized goods received as ordered.

Perhaps a situation involving a local designer could invoke this last point. A social maven who had spent an unusual amount of time taxing the sales associates and fitters about a custom-made dress revealing enough to make a showgirl blush phoned later to complain about it. No one noticed her, she said. As a result, she wanted to return the dress, which she had worn to her daughter’s wedding. The designer was under no obligation to do so.

Under normal circumstances, state law outlines that if a seller does not allow refunds, credits or exchanges and fails to disclose that policy as required, consumers can demand and must be given a refund within 30 days of purchase.

Otherwise, the seller is liable in a court action for the amount of the purchase and could be subject to pay other compensation.

If the seller misrepresents the product, the law stipulates that the customer is entitled to a refund regardless of store policy. Merchants cannot make baseless claims and then hide behind a no-refund policy. In addition, with few exceptions, minors (those younger than 18) are entitled to refunds. (For more information, contact the state Department of Consumer Affairs at (800) 952-5210 or https://www.co.la.ca.us/consumer-affairs.)

Not listed as a reason for a return under the state law is being stood up for a hot date.

At BCBG Max Azria in Sunset Plaza, a young woman spent hours assembling a knock-’em-dead ensemble for a date that evening. She was back the next day, explaining that she was entitled to return her buy because Mr. Right had turned Mr. Rude. Store policy is credit or exchange within seven days--with the tags in place. (That is, except for bodysuits, accessories, footwear, sunglasses, jewelry and clearance merchandise, for which all sales are final.)

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While it’s not written in the policy, the company stands behind its merchandise, says Kimberly Wheat, director of retail for BCBG Max Azria, and returns for faulty merchandise are determined on a case-by-case basis by store managers. What the customer asking for a refund didn’t know before traipsing back into the store was that the night before a couple of sales associates had spotted her sipping wine at a local restaurant in her new duds.

“Unfortunately, there’s a cavalier attitude among consumers that retailers don’t lose anything in returns. Everyone loses,” says Bruce Van Kleeck, vice president of the National Retail Federation’s member services. “Consumers lose on selection. Profits are reduced, and retailers take measures to ensure their profits. Manufacturers are affected and pass on the higher costs to retailers.”

Some policies now have more restrictions, Van Kleeck says, “particularly in high-abuse areas such as electronics or in special-occasion apparel like prom dresses. As a consumer, you wouldn’t want to pay good money to wear a used dress. But the average consumer is not going to notice these restrictions. As long as they keep their receipts and ask about policies before their purchases, they should encounter no problems at all.”

The scales remain tipped in favor of consumers, especially honest ones, which is probably why few complaints concerning refunds are made to the state attorney general’s office or to counties’ departments of consumer affairs.

“We receive more after any time of festivity, such as Mother’s Day or Christmas,” says Herrera, of the L.A. County Department of Consumer Affairs. “We investigate complaints, particularly if no sign is posted. But most of the time people want to return something because they saw the item cheaper elsewhere. We recommend that consumers always ask for a receipt. It’s an important document to have.”