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The Honolulu Advertiser
Posted on: Monday, December 26, 2005

Retailers prepare for flood of returns

By Lynda Arakawa
Advertiser Staff Writer

Shoppers crowding Ala Moana Center were a familiar sight through late November and December. Many of the gifts they bought were opened Sunday, and may be subject to returns by the recipients today.

JOAQUIN SIOPACK | The Honolulu Advertiser

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RETURN AND EXCHANGE TIPS

  • Keep the original receipt or the gift receipt. Many retailers will allow customers to exchange merchandise without a receipt, but may only provide merchandise credit for the lowest markdown price of the item.

  • Be aware of time limits for returning or exchanging merchandise.

  • Keep the original packaging and tags. Some retailers won't accept returns unless the item is in its original package.

  • Many retailers allow goods purchased on their Web site to be returned at their stores. If you have to mail returns back to the company, make sure you have the correct address. Some merchants have off-site service centers handling returns that may be in a different location from where the merchandise was sent.

  • Hawai'i law bars merchants from charging or deducting restocking fees for processing a refund, merchandise credit or exchange. The only exceptions relate to certain custom orders if the deduction is disclosed to the consumer before the purchase.

  • Merchandise credits must be valid for at least two years.

  • Most Hawai'i merchants want to ensure the customer is satisfied when returning merchandise. If you feel that you've been treated unfairly, talk with the store manager. If you are unable to obtain a satisfactory resolution of your problem, or if you believe that the store has violated Hawai'i's return of merchandise law, contact the state Office of Consumer Protection at 587-3222.

  • For more information on Hawai'i's return of merchandise law, visit: www.hawaii.gov/dcca
    /areas/ocp/brochures/merchandise
    .
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    So the aloha shirt you got for Christmas is too small, or that ceramic bunny from your auntie is not quite your style.

    Many stores accommodate exchanges and returns, but make sure you're familiar with their policies, which can vary.

    Some merchants have shorter time limits on returns for certain goods or won't give refunds when they're opened. Some will give store credit but not cash refunds for returned merchandise, and some may require a valid ID.

    Returning gifts purchased online can raise different issues, such as whether the merchant or the customer pays for shipping costs. Many retailers, however, allow goods purchased on their Web site to be returned at their stores, said Scott Krugman, spokesman for the National Retail Federation.

    "But the thing is that every retailer's return policy can differ, and it's very important for the consumer to find out what the return policy is beforehand, and they can do it by looking on the receipt, by going onto the Web site or simply by calling the store," he said. "That way they won't have any hassles on the day they go to return the merchandise."

    Many retailers have become stricter with return policies to combat fraud, but Krugman said customers with legitimate returns shouldn't find the return and exchange process more difficult.

    "As far as our customers with honest returns? No, I don't think it's becoming tougher," he said. "I think though for consumers who are trying to defraud retailers with dishonest returns, they're going to have a tougher time doing it."

    Return and exchange policies differ among retailers:

  • Macy's: Stores allow customers 180 days from the date of purchase to return an item that is in saleable condition. The item must have a valid proof of purchase, such as the original receipt or the Macy's return label that's put on the tag, said Lavina Wong, public relations and special events director for Macy's in Hawai'i. With the label, customers can be assured they will be credited with the purchase price, she said.

    Macy's customers can get a cash refund if the purchase was made in cash and they have the original receipt, a policy of many retailers. Without the original receipt they may receive store credit on their Macy's credit account or a gift card.

  • Best Buy: A holiday return policy posted on the company Web site states that goods purchased between Nov. 1 and Christmas Eve must be returned before Jan. 24. But certain merchandise, including computers, digital cameras and camcorders, are subject to shorter time limits for returns.

  • Banana Republic: The clothing store requires a valid ID for all returns and exchanges, according to the company Web site. Customers returning merchandise with a gift receipt will get an exchange or merchandise certificate for the purchase price.

  • Borders: Customers can return merchandise within 30 days of purchase with the original receipt; otherwise customers may only get store credit for a marked-down price and the store must still carry the item. Opened videos, discs and cassettes can only be exchanged for replacement copies of the original item.

    Hawai'i law prohibits "restocking fees" that some big chains charge on the Mainland, but other fees can be charged so long as they are disclosed before the purchase, said Stephen Levins, state Office of Consumer Protection executive director.

    Such fees can apply to returns on certain custom orders. A merchant may also recover repacking and transportation costs on certain items, such as if you decide you don't want a clothes dryer after it has been delivered, unpacked and set up, he said.

    But most stores aim to make the return and exchange process easy for customers.

    "We actually don't get very many complaints on refunds because we find that most stores try to accommodate their customers," Levins said. "But if someone has a concern they can file a complaint with the Office of Consumer Protection."

    Lydia Okada, a 51-year-old mortgage loan coordinator from Mililani, said she almost never returns or exchanges Christmas gifts. But when she buys presents, she makes sure to include receipts whenever possible so recipients don't run into problems if they want to return their gifts.

    "While I take pains to try to pick the right gift, I'm not clairvoyant," she said. "And I don't control duplicates that they might get from other people. I want to ensure that in the event they exchange, they get full value for what I paid for the item."

    Stores usually make the general return and exchange process pretty painless, Okada said.

    "I think that to the extent that they're reasonably able to do it, they really go above and beyond the cause to keep the customers happy."

    Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.