‘Wardrobing’ costs stores billions a year

Say the word “wardrobe” and you might think of a Hollywood star’s closet full of designer clothes. Make it a gerund, and “wardrobing” is a growing problem. Combined with other forms of consumer fraud, it cost merchants more than $10 billion last year alone.

Wardrobing is an act of fraud by consumers who make a purchase, use the product for a while, and then return it. They expect – and usually receive – a full refund, something retailers have adopted over the years as a standard business practice. That “money-back guarantee” was a way to keep customers coming back. These days, some merchants find that some shoppers are coming back way too often.

An increasing number of consumers are becoming “serial returners,” as they’re known by wary businesspeople. These consumers consider it a right to make a purchase, use it to fulfill an immediate need, then return it for what amounts to a cost-free rental. The practice most often involves clothes, worn once or a few times for special occasions. They’re returned with tags still attached, having been tucked inside while the wearer attended the event that was special enough to cheat, if not buy, for.

Some consumers, apparently feeling they’ve been slighted by “the system” or victims of a lagging economy, feel justified in such tactics. Whatever the reason, the National Retail Federation says 18 percent of all U.S. merchants experienced wardrobing in 2006. Last year the figure was 66 percent. The practice takes time in which businesspeople could be making bona fide sales, plus time to restock the merchandise if it is still in “as-new” condition. If not, it may have to be marked down substantially.

Wardrobing applies to more items than just clothing. During a recent visit to a large home center, I had a chance to talk with a hardware department employee. He said his firm’s fairly liberal return policy included not only tools but also even partial boxes of nails; we can only guess these were returned because the heads were on the wrong end!

Consumer electronics is an area that has seen increasing abuse by unscrupulous consumers. That big home theater system that impresses everyone at Super Bowl time and goes back to the store the next week means big headaches and lost revenue. De facto “renting” of computers, televisions, cameras and the like has become such a problem that some companies have adopted stricter return policies.

They are not alone. Companies across the country are taking a hard look at their policies, with an eye to reducing abuse. Curtis Picard, executive director of the Maine Merchants Association, recently advised member businesses to take precautions, including:

. Increasing communications with salespeople.

. Checking return policies for vulnerability to wardobing and to see if they’re in line with competitors.

. Joining organizations dedicated to fighting abusive practices.

People who want to “beat the system” try other fraudulent practices, such as falsifying receipts and even returning stolen goods for a refund. Such schemes hurt all consumers, who in the end pay higher prices to cover the costs of these illegal acts. Northeast CONTACT promotes responsible consumer behavior, as well as good-faith trade by business people, to foster a healthy marketplace.

Consumer Forum is a collaboration, now in its 30th year, of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual and business memberships are available at modest rates. Interested and motivated prospective volunteers are always needed and welcomed to apply to help with our mission. For assistance with consumer-related issues, including consumer fraud and identity theft, or for more information, write Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329, or e-mail

contacexdir@live.com.