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Home / New Zealand

Red Sheds' crackdown on refunds riles buyers

By Maggie McNaughton
23 Jul, 2007 05:00 PM3 mins to read

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Photo / Michael Bradley

Photo / Michael Bradley

What should shops' refund policies be? Tell us your refund stories Send us your views Read Your Views

KEY POINTS:

The Warehouse has tightened its returns policy because it claims customers have been taking advantage of its generosity.

But its toughened stance has caused anger among some customers, who say they have been given a hard time when trying to return genuinely faulty goods.

In the past, the
company's 12-month money-back guarantee enabled customers to receive a refund or exchange without proof of purchase. They could also take back goods in a non-resaleable condition and get a refund or exchange.

But The Warehouse has changed the rules because of abuse by dishonest customers.

Now, if the goods are faulty, proof of purchase is required for a refund or exchange. And if a customer buys the wrong size, for example, or has a change of heart, he or she must have printed proof of purchase and the goods must be in a resaleable condition, with packaging intact.

Exceptions include CDs, tapes, DVDs, and PC and gaming console software, because of copyright laws.

"For 20 years we'd had a money-back policy that was wide open and we hadn't seen the need to change it because it wasn't being abused," said Warehouse spokeswoman Cynthia Church, "but unfortunately we've noticed an increase of abuse, particularly of the non-resaleable condition."

Store managers had the discretion to make exceptions, if for example customers had genuinely lost the receipt, she said.

But the changes have caused anger.

One customer, who didn't want to be named, returned a $6.62 children's art set to Birkenhead Warehouse because the felt tips had dried out and the pencil sharpener was missing.

He said the returns desk insisted on testing every pen and a staff member said only three of the pens were not working and disputed his right to a refund.

He said she also questioned him aggressively as to whether he had lost the sharpener himself.

The customer, who had a receipt and was accompanied by his 2-year-old daughter and 4-year-old son, said he challenged the staff member, and was told it was a "new policy" not to offer returns automatically.

She eventually offered to swap the set after the manager intervened.

Ms Church said there should not have been an issue if there had been printed proof of purchase.

She said abuse of the old policy had included customers buying school shoes, wearing them for several months then returning them for a refund or exchange.

"If you bought a pair of school shoes in January, you'd wear them for a few months, you could bring them back and they didn't have to be in a resaleable condition and you'd get a new pair. Unfortunately that was abused, so we've had to put some measures in place, which shouldn't affect honest people.

"If you have a legitimate problem you shouldn't be affected. It's designed to target those who are abusing our generosity ... If goods are faulty, there shouldn't be a problem."

Ms Church said repeat offenders had now stopped. "We've had a few misunderstandings but no major complaints that haven't been resolved."

Consumers' Institute chief executive Sue Chetwin said the new rules were fair for customers, who were protected under the Consumer Guarantees Act and Fair Trading Act.

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