Can You Get Blacklisted Making Too Many Returns?

You can get blacklisted. The consequences of this kind of action is not the same with different companies. However, if you return too a lot items or their system notices your erratic returning pattern, you can get blacklisted. Many retailers, for example Walmart, limit the number of returns customers can make for a period of time, such as 3 non-receipt returns in 6 months.

There are customers that have been banned from making returns at many stores. Sometimes their online accounts are deleted.

Why Are Retail Stores Tracking Returns?

All these retail stores are not attempting to ruin your shopping experience with their tracking systems, but this is to stop them from incurring losses. But they’ve noticed some people trying to commit return fraud. Which means trying to cheat the store when returning some goods. Return fraud can occur in different ways, like returning a items or dress that has been used, or worn, or stolen goods to get money while using fake receipts.

How Are These Returns Being Tracked?

Quite a lot of retailers make use of The Retail Equation, a California-based firm that provides technology to avoid return fraud.

The most common idea is the use of a system called the Verify Return Authorization system. The system tracks fraudulent behavior with the help of statistical modeling and analytics at the return counters.

Here’s How Can You Get Blacklisted Making Too Many Returns?

The way this system is designed, it will swipe your driver’s license or ID to identify you whenever you return goods. Next, it scans the receipt you were given. Then, it monitors your return pattern. The system compares the frequency at which you return goods and prices against the retailer’s predetermined return policy. 

According to the Retail Equation, most stores using the Verify Return Authorization system accept the returned goods (99%), but there is still a 1% chance of rejection.

 It doesn’t mean that those that the stores rejected their returns did anything, but the frequency at which they return most goods is in violation of the company’s policy. For example, taking backing items after the allowed return-time or returning more items than the shop allows in a given period.

The Truth about Return Fraud

In 2019, around 5% of the 10% return-rate was fraudulent. Which increases by about 9%, especially in the holiday season. Furthermore, 20% of the returns made without receipts are fraudulent.

Due to the losses incurred from this return fraud, a number of retailers, notably L.L. Bean, have made changes to their liberal return policy. Also, the inability of merchants to resell most of these goods means they get sold in bulk at unreasonable discounts by private sellers or websites like Liquidation.com or SecondCity.

What Happens If You Aren’t Allowed To Return Bought Goods?

Keep in mind that if a customer isn’t allowed to return goods at a store, it doesn’t mean they can’t shop there anymore. They are still allowed to shop at any time. However, there is a short-time restraint on their return privileges.

Customers may be prevented from returning for a period of time by the system. However, if the customer changes their return behavior, the system can accept returned goods from that customer to the retailer.

The Step to Take if You’ve Been Put on a Blacklisted

For example, to resolve a row with a merchant that does not participate in The Retail Equation, you should call that company’s customer care department and explain what’s going on, give a receipt if available.

Conclusion

If you continuously return products to the store, you risk being blacklisted. However, if you follow the store’s return policy, you won’t get in trouble, no matter how lenient. If the garment is still in its original packaging and condition, some retailers will accept it within a certain time.

Can You Get Blacklisted Making Too Many Returns Frequent Asked Question

Is it illegal to return a used piece of clothing to a retail establishment?

In a nutshell, the answer is yes. Stores lose over $10 billion a year due to “wardrobing,” the habit of purchasing clothing, wearing it once or twice, and returning it to the retailer.

However, because of the growing prevalence of wardrobing and the increasingly permissive return policies of online merchants, you can get arrested if caught.