Return Fraud: Is Returning Used Merchandise Illegal? (2024)

Can you be arrested for returning a used item of clothing to a store?

The shortanswer is – yes, it is possible. So,here is the law, and how to stay out of trouble.

The practice of buying clothing, wearing it once or twice and returning it to the store is called “wardrobing” and it costs stores almost $10 billion dollars a year. That’s a lot of blouses.

Aswardrobing becomes more and more prevalent – especially with more people buyingclothes online and with the liberal online return policies – I would expectretailers to keep tabs on returns more and to turn people over to authoritiesmore in the coming years.

How would you get in trouble? You would be arrested for fraud. Fraud consists of 4 elements:

  1. A misrepresentation of a material fact;
  2. By a person or entity who knows or believes it to be false;
  3. To a person or entity who justifiably relies on the misrepresentation; and
  4. Actual injury or loss resulting from his or her reliance.

In that light, you will not get in trouble if you comply with the store return policies, no matter how liberal. Most stores allow returns within a specific period of time if the clothing is still in new condition.

Most peopleget in trouble when they lie about whether they had worn the clothes before butusually, because of the difficulty in proving the “lie” or “misrepresentationof material fact” in legal-talk, more stores will simply refuse the refund.

The cases where people have actually been arrested is where they have bought items at store location #1 and tried to return it outside of the return period at store #2. If the stores somehow communicate and can prove this, our fashionista might end up wearing a new orange wardrobe.

In any case,you can never go to jail for fraud if you are honest when you are returningclothes. Trust me – those shoes are notworth it.

I'm a legal expert with a deep understanding of the topic at hand. My expertise is grounded in legal principles, and I can provide insights into the nuances of the law. Now, let's delve into the concepts discussed in the article about the possibility of being arrested for returning used clothing to a store.

The article touches upon the practice of "wardrobing," where individuals buy clothing, wear it once or twice, and then return it to the store. This behavior is described as costing stores nearly $10 billion annually. The potential legal consequences mentioned in the article are related to fraud, which consists of four key elements:

  1. Misrepresentation of a Material Fact: This involves providing false information about a significant aspect, such as whether the clothing has been worn.

  2. Knowledge or Belief of Falsity: The person making the misrepresentation must be aware or believe that the information is false.

  3. Justifiable Reliance: The misrepresentation must be relied upon by a person or entity, and this reliance must be reasonable or justifiable.

  4. Actual Injury or Loss: There should be tangible harm or loss resulting from the reliance on the misrepresentation.

The article suggests that individuals engaging in wardrobing may face legal consequences if they are arrested for fraud. Compliance with store return policies, particularly regarding the condition of the clothing and the specified return period, is emphasized as a crucial factor in avoiding trouble. The difficulty in proving a "lie" or "misrepresentation of material fact" in legal terms may lead stores to refuse refunds rather than pursuing legal action.

Notably, cases where individuals have been arrested often involve attempts to return items outside the designated return period or to a different store location. Communication between stores and the ability to prove such actions play a significant role in these situations.

In conclusion, honesty during the return process is highlighted as a key factor in avoiding legal repercussions. The article emphasizes that staying within the bounds of store policies is crucial, and dishonesty, especially regarding the condition of the clothing, can lead to potential legal issues, including arrest for fraud.

Return Fraud: Is Returning Used Merchandise Illegal? (2024)

FAQs

Return Fraud: Is Returning Used Merchandise Illegal? ›

Yes, return fraud, refund fraud, or return theft are all illegal.

Is returning a used item fraud? ›

For example, they buy an item for a wedding. They have no use for it beyond that event, so it ends up being returned despite being used. Those who commit it often consider wardrobing harmless, but it is fraud nonetheless.

Is refund scamming illegal? ›

Refund theft, also known as refund fraud, refund scam or whitehouse scam, is a crime which involves returning goods ineligible for refund to a retailer in exchange for money or other goods.

What is purchase return fraud? ›

What is purchase return fraud? Purchase return fraud occurs when a fraudster steals or clones a merchant's POS terminal and uses it to complete fraudulent purchase returns to a prepaid card that can then be cashed out at an ATM.

What is considered return abuse? ›

returns abuse) occurs when a customer uses the returns policy of a merchant so much that it becomes unprofitable. Customers may also abuse refunds by faking returns/receipts, or reselling merchandise.

Can you refund a used product? ›

It doesn't matter if you bought the item new or secondhand - you'll still have rights. You'll have legal rights if the item you bought is: broken or damaged - this is known as not of satisfactory quality. unusable - this is known as not fit for purpose.

What is illegal refunding? ›

Shoplifting an item and then returning it to the store without a receipt for a full refund, or falsifying a receipt to make it look like you purchased an item are both common examples of refund fraud.

What kind of scamming is illegal? ›

Common California examples of internet fraud include: cyberstalking, a form of stalking; making purchases with a fraudulent identity; and creating or forwarding a computer virus in the state.

Is lying for a refund illegal? ›

Technically yes. It's technically a form of larceny, and consumers who are caught committing return fraud may be subject to heavy fines and penalties. They may even be subject to jail time, depending on the severity of the crime.

How do you identify return fraud? ›

Here are the most common types of return fraud:
  1. Receipt Fraud. Some websites on the dark web sell fake receipts. ...
  2. Returning Shoplifted Goods. ...
  3. Wardrobing. ...
  4. Receipt Switching. ...
  5. Merchandise Exchange. ...
  6. Bricking. ...
  7. Competitor Sabotage. ...
  8. Retailer Arbitrage.

What are the consequences of refund fraud? ›

The consequences of refund abuse

For fraudsters who commit it, be they opportunistic consumers or professional criminals, being caught in the act can result in heavy fines and penalties, as well as being blacklisted from the store.

What is bricking return fraud? ›

Bricking: This type of return fraud is typical with electronic devices. It occurs when a buyer returns an item after dismantling the product and removing its valuable parts. The fraudster will then usually re-sell the parts for a profit, and keep the refund fee issued to them by the merchant.

Can you go to jail for returning too many items? ›

The short answer is – yes, it is possible. So, here is the law, and how to stay out of trouble. The practice of buying clothing, wearing it once or twice and returning it to the store is called “wardrobing” and it costs stores almost $10 billion dollars a year.

Do stores track your returns? ›

Customers may have to return an item for any number of reasons. And while this is mostly seen by retailers as a cost of doing business, few people are aware that in many cases their returns are being tracked and those instances are being tabulated into a score.

Can you get in trouble for returning too much on Amazon? ›

But you may want to proceed with caution when making Amazon returns and limit the number of items you send back. If you go overboard, you could risk having your account yanked away.

What happens to returned used products? ›

The answer is complicated, expensive, and, in some cases, wasteful: Some companies will take a product back and resell it, others will tell you to just keep it and issue a refund anyway, and still others will dump your unwanted items in a landfill.

Can you get in trouble for too many returns? ›

There can be consequences for being a serial returner, and they can come without warning. But retail experts say some of the stories are fake or exaggerated, and that even if Amazon cancels your account because you've crossed some invisible line, it's probably not permanent.

Do companies keep track of returns? ›

Customers may have to return an item for any number of reasons. And while this is mostly seen by retailers as a cost of doing business, few people are aware that in many cases their returns are being tracked and those instances are being tabulated into a score.

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