It’s no secret that retailers lose money on returned items. In 2023, the U.S. retail industry saw huge losses amounting to $101 Billion in fraudulent returns. Large retailers like Target, Walmart, and Amazon are constantly trying to make changes to combat these losses while maintaining a fair return policy for their customers.
Recently, the Target return policy underwent a quiet change that most consumers are not even aware of.
Target’s Return Policy
As of September 2024, Target made a change to the language in their return policy. It now reads, “Target reserves the right to deny returns, refunds and exchanges including but not limited to prevent fraud, suspected fraud or abuse.”
While this amendment has been added to the returns policy statement, the policy still allows customers to return unopened items in “new condition” within 90 days of purchase.
Target Return Policy Without Receipt
Target has historically been pretty lenient with returns without receipts, but the policy varies depending on how the item was purchased, the kind of item, and the condition of the item. Without a receipt in most cases, Target may refund the amount onto a return merchandise card instead of back onto a credit or debit card.
However, according to the new Target merchandise return policy, they do reserve the right to refuse a refund if there is suspicion of fraud.
Target Return Policy for Opened Items
The policy for opened items varies based on whether the customer has a receipt and what kind of item they are trying to return, For instance, most beauty items can be returned opened with receipt within 90 days of purchase. Some electronics and entertainment items can be returned opened and even used, but the window is only 30 days for these returns.
Video games and music items can be exchanged but not returned if opened whereas collectibles cannot be returned or exchanged once they’ve been opened. The Target return policy for clothes is that most clothing items may be returned for a full refund within the 90 day window. Target Circle Card holders may exchange or return items within 120 days of the purchase, giving them an extra 30 days.
What is Return Fraud?
Consumers commit return fraud in a few different ways. The most common way return fraud occurs is when consumer return used items that are non-defective. For instance, a customer may purchase clothing, wear it a few times, and then attempt to return it for a refund. In other cases, return fraud occurs when a consumer actually tries to return a stolen or shoplifted item or an item that was purchased with a fraudulent payment method.
Large retailers like Target and Walmart end up losing an average of $30 on every item returned. According to a report from the National Retail Federation, “For every $1 billion in sales, the average retailer incurs $165 million in merchandise returns.”
Retailers like Target continue to alter their policies and slash prices amid rising inflation to provide positive shopping experiences to consumers while mitigating losses from retail theft and return fraud.
