I know it is unethical, but isn't it illegal, too?

[cgallery]

This has come up twice in recent months.

Yesterday I was in a shop and overheard a conversation between two other customers.

We were all out of ear-shot of any of the store's employees. First guy was doing the shopping and the second guy suggested he could save almost a third by purchasing online.

"No problem," the first guy said, "I'll buy one online, too. When it arrives, I'll return it here for a refund. But I need it now."

"Isn't that illegal?" asked the second guy.

"What law would I be breaking?" asked the first.

I really wanted to be able to site a law the guy would be breaking, but I had no idea. Is he breaking the law? Is this really that common?

Have returns of unopened items to places like Best Buy gone up dramatically, does anyone know?

[Uncle Cracker]

Happens all the time. It would be hard to legislate against it, and even harder to convict. Technically, it's a fraud, but intent would be difficult to prove. The retail outlet gets salable merchandise back in new condition, so they are not "harmed" (in the legal sense). It's just not very ethical. Nobody would be willing to spend the time or resources to try to put a stop to it.

[Alex Franke]

the first guy said, "I'll buy one online, too. When it arrives, I'll return it here for a refund. But I need it now."

I'd call that fraud.

[tuttlejr]

Several companies (BestBuy for sure) are keeping track of customers that have excess returns.
They can refuse to deal with them in the future. This is legal for merchants to do.

[paintandbodtman]

The easy way to prohibit this would be to give the online version an extra barcode that when scanned let the clerk know it was not purchased in the store. They would then have to at least switch boxes and it would be a open returned item and then the store could track the amount of returns an individual makes an at least charge 15-20% restocking fee.

Wayne

[LCHIEN]

i think its unethical, although technically not illegal and very hard for the store to prove if he returns an identcal item in the same packaging.

OTOH, stores do a similar unethical thing:
Many stores are going to store-specific models. It makes it hard to compare items to items... For example store A has a microwave model 9762 and it has certain features. Store B has one from the same manufacturer but its a 9763 and it has mostly the same features but just a bit different trim and included accessory items. Hard to compare prices, hard to get the other store to price match or give the add'l 10% refund and certainly you can't buy one at A and return to B even though they are for all practical purposes the same microwave.

It's certainly a way to get around any price match guarantees.

this is prevalent in appliances and electronics but I have not seen it in power tools... yet.

[Uncle Cracker]

Many stores are going to store-specific models. It makes it hard to compare items to items... For example store A has a microwave model 9762 and it has certain features. Store B has one from the same manufacturer but its a 9763 and it has mostly the same features but just a bit different trim and included accessory items. Hard to compare prices, hard to get the other store to price match or give the add'l 10% refund and certainly you can't buy one at A and return to B even though they are for all practical purposes the same microwave.

It's certainly a way to get around any price match guarantees.

It's ironic that the very stores that make a big deal over bragging that they meet or beat competitive prices are the very ones who are using this tactic...

[LCHIEN]

that's why they can brag and make these guarantees... they never have to make good.

[rjwaldren]

Best Buy and Circuit City have been doing that for years, the only real difference many times is the letter or last number in the model number...Can't price match -they're different models. I guess it's just nearly the same as ryobi vs craftsman allot of times. Costco does it on their electronics, but I think that's more to do with bundle deals with the manufactures (ie The toshiba hd-a3 came with nothing at BestBuy, but the Costco HD-D3 box, had movies, HDMI cable and a HD-A3 in the box)

As to the original question regardless of my opinion, my wife would call it fraud. It is therefor, fraud.

[cabinetman]

What may not match up is serial numbers. The items may be identical, but the store usually keeps track of their inventory. That would be easy to do. If the guy needs it now and buys it at the store, and then orders one online, he would have to return the store bought one in the same box, and whatever it was, may have been used.
.

[Russianwolf]

Stores rarely keep track of serial numbers as they are not usually listed on the outside of the box , so how would they keep track of which they had sold?

The only places that I know of where serial numbers are kept track of with any regularity are Auto dealers.

As far as ethical and legal? well, it's a form of forced price matching in my opinion. That is something business should be doing anyway in order to compete so I don't see an ethical or legal problem with it.

[jackellis]

I don't think it's illegal but it is clearly unethical. It's also the kind of tactic that has driven manufacturing off shore and that eventually reduces competition.

We all love good deals but there comes a point where making too many good deals or having a return policy that's too generous or tolerating customers that abuse customer-friendly policies can bankrupt a retailer or a manufacturer or an airline.

[Hellrazor]

It is about as ethical as stores selling open boxes as new.....

[drumpriest]

Mike, the issue with forced price matching is that these stores don't guarentee a price match vs an internet supplier anyway. They have costs of operating a physical store, which is much higher than operating a web site.

What they do that pisses me off is just not stock much. If I need an item, I'm usually punished for trying to find it locally. It takes a bunch of time and gas, noone ever has it, and in the end, I order it online anyway.

It would be fairly trivial for a store to track the actual serial numbers of items, and this type of mini-scam may promote the idea. I agree, it's unethical, I wouldn't do it. I have dealt with the "package deal" idea for a while, seen it around a lot. My camera (which I bought at costco) was a package deal, and Canon boxed up the package, but you can get the exact same group of items from best buy, as a get this free with purchase of this other way overpriced item. Totally different thing.

[cwithboat]

Costco just keeps a record of every purchase you have made. Hence they quickly accept returns from purchases regardless of which Costco outlet you bought it from.