Is Retail Renting Ethical?
The Boston Globe has an interesting article in which they attempt to explain the phenomenon of "retail renting" or "wardrobing"--where consumers buy items with the intention of returning them when they're done with the prom or the meeting or whatever. The article blames a mix of influences, including the economy and celebrities who obviously borrow many of their fancy gowns and jewelry.
Some people don't see anything wrong with the behavior:
Jimmy Deignan's first time was with a $500 portable DVD player.Retailers are responding to people like Deignan with increasingly invasive policies that attempt to weed out the "wardrobers" from legitimate returns. Is "retail renting" ethical? Or is this fraud?He bought it a few years ago at Best Buy for a Boston-to-Los Angeles flight, knowing he would return it for a full refund when he got back. More recently, in November, rather than spending $600 to rent a LCD projector for a business presentation, the Holden resident purchased one at Staples, then returned it a few days later and got his money back.
The way Deignan sees it, he is just a smart shopper: He gets the things he needs, uses them for as long as he wants, and saves money.
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Some shoppers who wardrobe do not think they are doing anything wrong. Deignan refers to the way he buys as renting. To see him through the NFL playoffs, Deignan planned to wardrobe a plasma TV after his set broke in December. But it got fixed in time, just before the first Patriots playoff game."There's lots of times when I buy stuff that someone's bought before. When I rent something, I'm taking good care of it," said Deignan, who works as an event coordinator. "And, it made me look good when I saved my company $600 in rental fees for the projector."
Retailers Crack Down On Serial Returns [Boston Globe] (Thanks, Sean!)
(Photo:Getty)
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I work at a retail clothing store and we have numerous who do this all the time because our return policy is especially lax. It drives us insane because we have to take the item back anyway, but once we do, it immediately gets taken into a back room and donated to good will because we can't sell it anymore. It is not only screwing the company, it screws the customer as well, requiring us to charge higher prices for items so we don't have to absorb the cost and have slimmer margins.
there's a reason they're called retailers. it's b/c they sell stuff. if you want to rent, try rent america or rent-to-own, or some other place designed for your needs.
i get angry at retailers b/c they charge restocking fees or blacklist "problem returners:, but when i encounter folks like this, i understand why the policies exist.
the more people that do this, the more things will cost & the more stringent the policies will become. thanks for ruining it for everyone, assholes!
This is a stinky can of worms that you just opened up.
Have I ever bought something, used it and then realized I didn't like it? Yes...
Have I ever bought something knowing that I would return it before the end of the return policy? Yes.
Am I a jerk for doing this? Maybe...
You see, I bought a camcorder from Circuit City a while back. It never worked quite right so they made me send it in for service. The third time I sent it in for service I asked what the replacement policy was. They told me that it would be replaced if it needed a 4th repair. The 4th repair was the motor on the camera.
Guess what? They wouldn't replace it. I owned this camera for 6 months. Three months was the amount of time it spent getting "repaired". The customer service representative simply suggested that I buy a new camcorder if I wanted to be able to film the birth of my first daughter.
So, I did. I was pissed off that they jerked me around. That they didn't stand behind the products they were selling and because they lied to me. So I bought a camcorder, used it for two weeks (during which time my daughter was born) and then returned it on the last day of the return policy. My other camcorder happened to come back from repair three days later which worked out ok.
So, what do you think? Was this retail renting? Was it justified? If I don't like something, I will take it back. My wife hates when I take things back. She believes that if I bought it, I should keep it. But she will also rather not eat her dinner at a restaurant rather than complain that her meat is undercooked.
I don't think any of these examples are remotely ethical.
On the other hand, I have purchased several models of an item (OTA antenna, for example) with the intention of returning the ones that didn't work. I always chose the open boxes and packed them neatly again. And since I was honest with the workers/managers about my intentions I assume it was fine.
Costco used to have a lifetime return policy. People took advantage, and now it is 90 days.
I bought an LCD about 30 days ago. I jsut found out that Costco is putting a better model on sale on March 10th. I am not sure what the price is going to be yet, but I may return my TV to get the other model.
In this case, I don't think what I am doing is wrong. I am returning something, to exchange it for something I think is better, with the full intent of keeping the next one.
yeah, it isnt ethical. But I have done it back when I was a student twice I bought a boombox to take on vacation with the full intent to return it once I got home.
I have also done a similar thing where if I have a broken item they will not repair/exchange or I lost the receipt, I have bought a brand new one, swapped the boxes and took it back for a refund as faulty. This I don't think is as bad - I've only ever done it when the product is defective and I still end up with the same product, just a working one.
What I love is that the same people who did this would always bring things up looking for a discount when something wasn't perfect. Of course it's not perfect, someone like you already used it. I once had a girl return the dress she wore to a wedding I was a bridesmaid in at the register I was ringing on. It was a small wedding, she knew I had seen her. I had to return it, because her name wasn't in our stupid book of people who do crap like that yet, but it got put in there for that one.
@Copper: The retailer IS out money. For many product types, they cannot be sold as 'new' if they are returned goods. Most retailers will knock about 10% off the price and charge the returnee a 10% restocking fee (net zero), but this ignores the cost of checking the return, the customer service interaction, reboxing, systematically adjusting for it, which all eats up lots of hours of employee time. This does cost business a tangible amount of money. Additionally, some products from specific vendors cannot be sold open box, due to specific mfr relations. So they need to be shipped back, which directly affects operational costs, and wastes gas.
Additionally, with goods like clothes, the price is very sensitive to time, in that the prices rapidly go down after a new piece is released. In this case, 'renting' an outfit is very abusive of a return policy, which is meant to cover issues of satisfaction, or a garment not fitting properly rather than people being cheap and unethical.
@Hackoff: Your case is special. You had a particularly bad experience and felt that some appeasement was in order, and the retailer didn't offer any. Then you used two wrongs to make a right. This is all very specific and warrants individual attention. The scope of this article only covers people who buy and return goods because they want the functionality of it for a short period of time, and are unwilling to pay for it. You were willing to pay for it - you already bought the camera!
Many times I have come to regret making a purchase, yet did not return the item. I simply try to improve my decision making next time. It's not the fault of the manufacturer or the store that I made a mistake, so why should they pay for it?
The only occasions on which I will return an item are when it is defective or clearly didn't live up to its advertising.
Retail renting is stealing. Stop rationalizing it.
This is not ethical, no. It's screwing with retailers' business and it's making it difficult for people who legitimately return items to make their returns, because with every person who buys it only to use it and return it when they're done with their event, stores tighten their grip on return policies even more.
This is NOT the same as celebrities who borrow Harry Winston jewelry for the red carpet. Harry Winston allows them to borrow the jewels, and this is not underhanded, like if the jeweler in question did not know the celebrity would return the item for any other reason other than that person had used it and didn't need it anymore. If it was defective, return is valid. I don't buy things to use them for a day and return them, especially not clothing. I wouldn't want to buy something I thought was new, only it isn't because someone bought it, wore it, returned it.
How is there even a question as to whether this is ethical? The store cannot sell it as new when you return it so it loses value. How the guy compares it to renting in the article is a comlete joke since he obtains value from something for nothing and it ends up costing the store money. I would like people to start 'renting' from him. I have no issue with returning things that were not needed or not liked but to purposefully purchase something for the trip across the country with the intent of returning it is sick.
Oh yeah...and thanks for screwing up the retail return policy for those of us who do not do this.
It's not just unethical, it's outright stealing. You're stealing an actual revenue opportunity from the merchant by depriving them of the goods for however long you keep them. The fact that you're only stealing something for a short time doesn't make it any less stealing. This one's not even a difficult call.
Not at all ethical. This is why the rest of us get nickeled and dimed at big box retailers. These scumballs (who have not gotten screwed as some of the previous posters have) game the system, so the retailer has to tighten the policy.
electronics often have to be sharply marked down to sell once they are "open box". This means the retailer loses money when people "wardrobe". Pretentious a$$hats who think that having expensive things gives them higher status are only impressing the superficial.
'Renting' implies paying an agreed upon fee to the Lessor (the stores) for the use of the product for a specified time. Since the Lessees (scumbag 'wardrobing' consumers) fully use the product and don't expect to pay a thing in the end, that's not renting, that's called stealing.
If you want to wear clothes that aren't yours for day, either become a celebrity, or go to a Halloween costume store.
For possible solutions to this dilemma, cf. the free rider problem and book II of Plato's Republic. See also 2400 years of intellectual history which hasn't come down on one side or the other regarding grave issues of substantive justice, let alone the trivialities of retail renting.
My hypothesis is that no resolution of the latter will be forthcoming.
@backbroken: You must be out a lot of money then, if you don't return the item you buy and regret. I bought a shirt last week that I thought looked fine, and when I tried it on again a few days later, I realized I didn't like it as much as I originally thought. Am I going to keep it just because I made a mistake? Nope. I'm returning it because I can, but it's not unethical because I fully intended to keep the shirt, before I realized it didn't fit as well as I thought.
DEFINITELY NOT ETHICAL! I don't try on clothes at the store. I know my size and what I like. At home I see if they fit, and if I don't like it I return it. It is rare for me to return something I don't like. About electronics, is really hard to find something brand new and seal from factory.
@Javert: "he store cannot sell it as new when you return it so it loses value." I would disagree a bit with you. I was looking for a Nintendo DS to buy as a gift for my nephew. Most of the NDS where "returned" and they had the sticker "Open Box" and the price was the same as a new one. So I don't think the stores will low their prices, if the item has been open and returned within a couple days...
If I intentionally buy a product that I don't plan to keep and plan to use and return, why am I not committing fraud?
Aren't I purchasing under false pretenses? Renting an item (which most retail stores don't offer) would assume one is paying some amount in exchange for temporary usage. Although I would have the benefit of temporary usage, I am providing the merchant no compensation for that usage.
The fact that this is unethical is completely obvious, but can an attorney weigh in on if it is legal, when someone purchases with the intent to use and return?
Now - all that being said, I too have used the purchase and return scenario - when a product has been defective. For example, when purchasing an item missing components, typically the retailer cannot assist and you must contact the manufactuer (and sometimes pay shipping charges. Since I feel this is no fault of my own, in situations where I've lost the receipt, I've purchased the same item and returned the incomplete original. The merchant will return it to the manufacturer as defective and chargeback the mfg. Note that the merchant still has one complete transaction for the product I've retained.
I hate people that do 30-day rentals.
Back when I worked at Microcenter in Customer Service, there was a guy named Avni Gurun. I returned software for him and for some reason (later in the day) I had to look at his purchase/return history. The guy's first purchase was a 300 MB hard drive (this was a LONG time ago). Every purchase since (about 50 items) was mac software and was returned about a week later. Any questions as to what he was doing?
Every now and then, I would see an RTV (return to vendor - any open software that got returned) that one of the other reps processed with his name. I would curse his name as he got away with another one. Finally about 2 or 3 months after I first discovered him, a guy tried to return some software and when I looked at the reciept...it was him. AVNI GURUN!
I grabbed his receipt and software, excused myself and ran back to our awesome service manager, who we called Dr. No., and explained the situation. He had me go grab Avni and bring him into the office. My boss explained to Avni that we will happily return this item, however, he was effectively banned from the store as we were flagging his account and credit card stating not to accept any returns from him.
A few months later before I moved on to a new job, I checked the system one last time. My return was the last transaction he made. I still get a tear in my eye when I think of him...






















Er...depends on how you view things as right and wrong. Some people, myself included, don't see this as wrong because it's within the return guidelines, it's playing by the rules. However, it's wrong in the sense that you buy it knowing full well you're returning it. Perhaps when a restocking fee is required for items like a computer, one would gladly pay this "rental fee". I do this it's wrong in a sense because you know in advance you're just going to return it, but I wouldn't feel bad about it because someone else can and will still buy it so the retailer isn't out any money.