News Release

EMBARGOED FOR RELEASE:	PRESS RELEASE CONTACT:
Thursday, December 14, 2006	Tracy Shelton
	(212) 349-6460; (917) 570-9027

CONSUMER GROUP ALERTS SHOPPERS OF ANTI-CONSUMER RETAILER RETURN POLICIES AND PRACTICES AND OF GIFT CARD PITFALLS

Consumers across the state face risks as they shop this holiday according to a second annual statewide survey and report, "Many Unhappy Returns," released today by the New York Public Interest Research Group (NYPIRG).

"New Yorkers are in a risky situation this holiday season as they purchase and receive gifts that might not be quite right," said Tracy Shelton, NYPIRG Consumer Attorney, "The business of making returns and exchanges can be fraught with privacy violations, inconveniences, fees and other hidden costs and risks."

According to NYPIRG's second annual survey, which included more than 200 store across the state, some retailers do not allow consumers to return or exchange items they purchase at all. Moreover, while most retailers surveyed do allow consumers to return or at least exchange items they purchase, ALL retailers surveyed impose restrictions on those returns and exchanges. Examples of particularly anti-consumer restrictions include making returns only at the manager's discretion, requiring valid ID to be presented for returns and assessing re-stocking fees or otherwise reducing the amount of the refund.

"Sometimes, it can also be difficult to ascertain the retailer's return or exchange policy," said Andrew J. Morrison, NYPIRG Consumer Advocate.

Some retailers surveyed did not have signs posting their policies and consumers would then need to ask a store representative in order to find out the store's policy. Other stores disclose their return policy on the store receipt. Furthermore, while most of the store's surveyed do disclose their policies via signs, our surveyors noted that many of the signs were small, obstructed and/or difficult to locate.

"Another concern for consumers who make returns is the anti-consumer practice of the company, Return Exchange. That company maintains Return Activity Reports on consumers, most of whom have no idea their returns are being logged on such a report," said Shelton.

A number of retailers included in the survey required that consumers present valid ID to make their returns. Retailers who participate in the Return Exchange's Verify 1 service must obtain and swipe the customer's ID. This anti-consumer practice has privacy implications, exposes consumers to increased identify theft risks and may result in the denial of returns based on undisclosed criteria.

"Gift cards are marketed as an alternative that will cut down on returns and exchanges. While they can help consumers avoid some of the pitfalls of returning and exchanging, gift cards have their own consumer pitfalls," said Tyler Hartshorn, a NYPIRG Consumer Advocate.

Store-issued gift cards can result in monthly fees if they are not used within a certain time period. Bank-issued gift cards can be fraught with fees including processing fees, replacement fees, ATM fees, inquiry fees and monthly maintenance fees.

NYPIRG is a statewide nonprofit, nonpartisan public interest organization dedicated to environmental protection, consumer rights, and good government. Click here to read the full report.

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News Release | Introduction | New York Retail Store Return and Exchange Policies
The Disclosure Methods of Retail Store Return & Exchange Policies | The Return Exchange
Gift Cards | Consumer Tips | Recommendations | Methodology | Exchange Survey Results
Gift Card Survey | NYPIRG Consumer Protection Pages | www.nypirg.org