Target, a major retail chain in the United States, recently changed its return policy to address the issue of customers abusing the company’s lenient policies. This decision by Target comes at a time when many retailers are facing return fraud problems.
Target has introduced a restrictive return policy aimed at preventing consumers who exploit its return policy from targeting the company for fraudulent activities.
The updated return policy on the Target website states, “Target reserves the right to refuse returns, refunds, and exchanges, including but not limited to preventing fraud, suspected fraud, or abuse.”
The new policy retains the original provision that for most unopened new items sold by Target, customers can receive a refund or exchange within 90 days of purchase.
However, for opened, damaged, or items without receipts, the retail giant now states that it may refuse refunds or exchanges.
Staff will now be more vigilant to identify potential fraudulent activities.
Prior to implementing this new rule, customers have often returned items used multiple times or items stolen from stores over the years.
The National Retail Federation (NRF) stated in a press release on Thursday, September 26th, that retailers have been working to reduce return behavior, as the total return amount in the retail industry in 2023 amounted to a staggering $743 billion, with a total return rate of 14.5% of sales.
According to a report released by “Appriss Retail,” a company that provides solutions for retailers, the fraud-related losses from returns in 2023 were estimated to be $101 billion. Furthermore, for every $100 worth of goods returned, retailers lose $13.7 due to return fraud.
Mark Mathews, the Vice President of Research at the National Retail Federation, stated in the press release, “Retailers continue to test and implement new methods to minimize losses from returns, especially fraudulent returns, while optimizing the customer shopping experience.”
“The efforts made by retailers include providing more detailed information on sizing and fit for online products, as well as requiring receipts for returns,” Mathews continued. “Overall, the industry is prioritizing efforts to reduce the volume of returns for both in-store and online purchases.”
(*This article referenced reporting from the New York Post)