Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Thursday, December 23, 1999

Release #503-99

Contact: Sunny Mindel/ Matthew Higgins (212) 788-2958
Mike Haberman (212) 487-4407


MAYOR GIULIANI AND CONSUMER AFFAIRS COMMISSIONER JULES POLONETSKY WARN LAST MINUTE SHOPPERS TO BE AWARE OF STORE RETURN POLICIES

Mayor Rudolph W. Giuliani and Consumer Affairs Commissioner Jules Polonetsky warned New Yorkers to be aware of store return policies as the holiday shopping season reaches its peak. Research conducted by the Department of Consumer Affairs revealed that return policies vary widely from store to store, with some offering generous return policies and others charging a restocking fee as high as 15 percent.

"Even though time is running out to complete last minute holiday shopping, New Yorkers should keep in mind that they may have to return gifts and that some stores have somewhat onerous return policies," the Mayor said. "With the wide range of return policies observed by conventional retail stores and online companies, a store's return policy might influence a decision to make a purchase. That's why it's important for shoppers to know their rights in advance, to ask questions when a store's policy is unclear and to act promptly when it becomes necessary to return an item. By following these simple tips from the Department of Consumer Affairs, shoppers will make sure they don't get stuck with unwanted gifts."

"When purchasing an item, consumers should be aware of what rights they have if they want to return the item," Commissioner Polonetsky said. "There are laws designed to protect consumers and their ability to get the quality goods they expect."

Merchants can practice any return policy they choose as long as it is clearly disclosed. Under the New York City Consumer Protection Law, consumers have the right to know a store's refund policy before they make a purchase.

The law requires all stores in New York to display their refund policy on a sign that can be easily read by the consumer. This can either be:

The sign must disclose the amount of time in which the item can be returned or exchanged; whether the customer will receive store credit, cash back, or only an exchange; and what will be done if the consumer does not have proof of purchase.

Commissioner Polonetsky said if no policy is posted, the consumer has the right to return the item up to 20 days after it was purchased. The refund must be given in the same manner in which it was purchased - cash for a cash purchase, credit card credit for a credit card purchase, etc.

Regardless of the store's individual return policy, the law requires that the merchant compensate a consumer for any product that is defective, faulty, or fails to live up to the applicable warranties or other terms and conditions of the sales agreement. However, many consumers do not know that if they buy something that is broken, the merchant can try to repair it rather than exchanging it for a new one.

The Department of Consumer Affairs has researched the return policies of several major retail establishments in New York City and found a wide variety of policies. Commissioner Polonetsky urged New Yorkers to inquire about return policies before making a purchase.

Some policies, especially those related to computer products, can be complicated. For example, Circuit City will give a full refund on most products if returned within 30 days from the date of purchase and if the consumer has a receipt. However, there is a 14-day return limit on computers and computer-related merchandise. In addition, there is a 15% restocking charge on all computers and accessories.

Most stores will not allow customers to return computer software if the package has been opened. For example, Staples will allow customers to return software for up to 30 days if it has not been opened. However, if the software is opened, they will only permit a customer to exchange it if it is defective and only for another copy of the same software.

"Computer stores have to be careful because of issues surrounding piracy," Commissioner Polonetsky said. "But consumers also have to be careful and be sure that they understand and accept these stringent return policies."

Unlike Circuit City, many clothing stores like The Gap have very few limitations on their refund policy. The Gap has an unlimited time period for any merchandise for exchanges. If a customer has a receipt, they will give a refund in the same manner in which the item was paid for. If a customer does not have a receipt, The Gap will give a store credit or allow an exchange.

However, customers should beware if they don't have a receipt at a clothes store, the Commissioner warned. Most, including The Gap, Eddie Bauer and Sterns, will give a refund for the price the item is selling for at the time it is returned. So, if the item is on sale and the customer doesn't have the receipt, they may receive less than they paid for the item.

Most clothes stores now provide a "Gift Receipt" that includes a bar code but no price. This way, if the person who receives the gift wants to return it, the store knows how much was paid for the item and can give the appropriate refund.

Consumer Affairs also checked policies of some online companies.

"With online shopping becoming increasingly popular, consumers must be more vigilant than ever in checking the return policies of these stores," Commissioner Polonetsky said.

The Commissioner added the easiest way to return online purchases is if they have a brick and mortar location. Toys R Us, for example, allows gifts that were purchased on the web to be returned at the brick store. If the customer has all of the confirmation materials, the item can be returned for a refund or store credit. If the customer only has a packing slip, they will not receive a refund - they will receive a store credit for the merchandise.

The Gap also has a very consumer friendly policy regarding online purchases. The online Gap store allows returns to brick stores with a photo ID and without a receipt. The product can also be returned via the mail but the return-shipping fee will only be waived if the merchandise sent was the wrong piece or was defective.

E-Toys does not operate retail stores but does have a generous return policy. Items can be returned for any reason at any time. However, shipping costs will only be reimbursed if there was a mistake in the order.

Mayor Giuliani and Commissioner Polonetsky offered the following tips for shoppers: