Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Sunday, December 24, 2000

Release #489-00

 
Contact: Sunny Mindel / Lynn Rasic (212) 788-2958
  John Radziejewski (DCA) (212) 487-4283

MAYOR GIULIANI AND CONSUMER AFFAIRS COMMISSIONER HOFFMAN
ADVISE CONSUMERS ON HOLIDAY RETURN POLICIES

Mayor Rudolph W. Giuliani and Consumer Affairs Commissioner Jane S. Hoffman today reminded New York City shoppers that it is important to be aware of their rights regarding refunds and exchanges. With the holiday shopping season coming to a close, consumers are rushing to return and exchange gifts. According to the International Mass Retailers Association, 32% of consumers plan to return gifts they have received during the holidays.

"We want people to have a hassle-free holiday when it comes to returning and exchanging gifts," Mayor Giuliani said. "It is helpful for consumers to know the refund policy at the store before they purchase an item. Although a refund policy is up to the discretion of the owner, consumers do have rights when it comes to returning their gifts. Knowing these rights will make it easier for New Yorkers at the return counter."

"Refund policies are like snowflakes - no two are exactly alike," Commissioner Hoffman said. "However, there are a few things consumers can do to ensure an easier time when exchanging or returning their presents."

Under the New York City Consumer Protection Law Rules, consumers have the right to know a store's refund policy before making a purchase, particularly if the store does not offer cash refunds or exchanges for non-defective and unused merchandise. By law, merchants must give refunds or exchanges on unused, undamaged goods within 20 days of purchase unless they post an easy-to-read sign that tells consumers otherwise.

The law also requires all retail establishments to conspicuously post their refund policy. This policy must be on a sign that is either attached to the cash register or wherever sales are completed, in a place visible to the consumer from the cash register, at each store entrance or on a tag attached to the item.

In addition to on-site store disclosure, refund policies may also be stated on sales receipts. However, stores that disclose their refund policy only on their receipts are in violation of the law.

Regardless of a store's refund policy, consumers are entitled to redress for products that are defective, faulty or fail to measure up to applicable warranties or other terms and conditions of the sales agreement. In general, a consumer has a right to a working product unless the merchandise was purchased "as is." On the other hand, it is not commonly known that merchants can try to repair the item, rather than exchange it for a new one.

The Department of Consumer Affairs (DCA) investigated the refund policies of a variety of brick and mortar stores in addition to the refund policies of some online sites. The investigation uncovered the fact that most brick and mortar stores, as well as some Internet sites, required a receipt or proof of purchase to return the item for the full purchase price. However, most brick and mortar stores will give a merchandise exchange or store credit for the current selling price of the item, if no receipt is available.

"While it is the season to be giving, most consumers do not want their loved ones to know how much money they spent on gifts," stated Commissioner Hoffman. "If no receipt came with the gift, the tags should be left on the item so the store knows that it was purchased at that store and not elsewhere."

One Internet site, E-Toys.com, has an exchange/return policy that is very consumer friendly. E-Toys allows any item, in its original condition, to be returned for any reason at any time. They will offer a gift certificate to E-Toys, a full refund or even a replacement of the item. Included with the merchandise should be the Return Form, if this is lost, or unavailable, consumers can print a new one from the web site. However, there is a charge of $4.95 for shipping the product is returned to the customer.

"With approximately 16% of consumers saying they have shopped over the Internet, it is comforting to know that recipients can handle an exchange or return stress-free," Commissioner Hoffman said.

Returning or exchanging gifts at an electronics store can be difficult. Many electronics stores have a "restocking fee" on computers and accessories and a limited return time on those goods. For example, instead of the 30-day return policy that the store may have on other electronic items, there may be only a 14-day return time on computers and computer-related items. Also, the restocking charge is usually 15% of the cost of the item when the store takes to take it back. In addition, video games that have been opened usually cannot be returned, unless the item is defective.

"While it may be a burden to try to return or exchange computers and their accessories, when shoppers keep the original packaging of the item it will make their lives a little easier when returning these items," Commissioner Hoffman suggested.

Mayor Giuliani and Commissioner Hoffman also offered some tips for shoppers:

To file a complaint about any store, consumers can go to the DCA website at www.nyc.gov/consumers or call (212) 487-4444. To receive a copy of the DCA's brochure on refund policies, consumers can either go to the website or send a self addressed stamped envelope to:

NYC Department of Consumer Affairs
42 Broadway, 8th Floor
NY, NY 10004

 

www.nyc.gov


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