Restocking Fees on Returns Commonplace

Seattle, WARestocking fees on returned items are becoming increasingly common in the retail world. Whereas before they were mainly used on electronic returns, they are now being used in many retail areas including clothing and automobile returns. According to SmartMoney.com, Chrysler's 30-Day Return Program has a restocking fee that is 5% of the vehicle's sticker price. That can run a consumer over a thousand dollars.

However, restocking fees should not be charged in all situations. There are some circumstances in which it is inappropriate and even illegal in some states, to charge restocking fees. The question to ask is whether or not the return is due to a mistake on the consumer's part or on the company's part. If the mistake is on the consumer's part (i.e. ordering the wrong product by accident) then a restocking fee may be perfectly reasonable. However, if the company made a mistake (i.e. sending the wrong product) then no restocking fee should be charged.

Some situations in which restocking fees should not be charged:

• The company has sent the wrong item.



• The product sent is defective, except in cases where the customer was already advised as to its defective status.



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• The item was sold based on incorrect information.

It is always a good idea to know the law regarding restocking fees in your state. Some states allow restocking fees provided the policy is made available to the public before a purchase is made. However, not all states have that law. Hawaii does not allow restocking fees except in certain customer orders. According to the Hawaii Department of Consumer Affairs, "Merchants may not charge or deduct restocking fees for processing a refund, merchandise credit or exchange." Other states have their own laws and their own remedies in situations where a restocking fee is illegally charged.

Often, companies that are not as trustworthy as others charge unreasonable restocking fees. The reason some do so is to discourage customers from returning products, even if the return is warranted. Some companies charge a restocking fee regardless of whether or not an item has been opened or used. The fees are often charged with no regard for the actual cost of restocking merchandise and may therefore be misused as a source of revenue for businesses.