Posted on: Saturday, December 18, 2004

Return policies getting stricter

By Wendy Tanaka
Knight Ridder News Service

PHILADELPHIA — With the holiday season upon us, a trip to the merchandise return counter can't be far behind. Just be sure to bring along your receipt — and, in some cases, a photo ID, too.

Some retailers have begun implementing stricter return policies that require photo identification — such as a driver's license — to complete the return, even if the returner has a receipt and price tags are still on the item.

The reason? Fraud. According to the National Retail Federation, returns of used or stolen merchandise are costing the industry $16 billion annually.

Express, K.B. Toys, Sports Authority and Guess, among others, now require photo IDs for returns.

At some retailers, those IDs are scanned, and personal information — including name, address and phone number — is automatically put into a database.

Retailers say they are collecting the personal information directly from IDs to help stem crime and to prevent price increases due to losses from stolen merchandise.

But some consumer advocates say collecting personal information and storing it in databases infringes on customers' privacy.

Beth Givens, director of the Privacy Rights Clearinghouse in San Diego, said she had received complaints from some consumers about the ID requirement.

"They say: 'I've got the receipt. Why can't I make the return? I feel as if I'm being coerced,' " Givens said.

That is why some retailers, including Urban Outfitters and Target, so far have decided against requiring photo IDs.

"If it feels like it's a serious problem in the future, we'd do it," said John Kyees, chief financial officer for Philadelphia-based Urban Outfitters Inc. "But we don't want to aggravate customers. ... The relationship with customers is the most important in the retail business."