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Releases & Statements
Public Advocate Betsy Gotbaum found
that 44 percent of stores surveyed by her office charge restocking
fees on returns. Despite consumer protection laws, twenty-seven
percent of stores charge restocking fees without posting information
about this additional cost.
Gotbaum’s office also surveyed
100 randomly selected New Yorkers in commercial districts throughout
New York City to determine their awareness of restocking fees.
Forty-three percent had never heard of the term “restocking
fees” and were unaware that some stores charge these fees
when consumers return or exchange their purchases.
“The retailers want to hold
consumers to a ‘don’t ask, don’t tell’
policy, but the law is clear: retailers must post information
about refund, return, and restocking fees. Consumers deserve to
know what they’re in for if they want to return a purchase,
and it is up to the businesses to tell them,” Gotbaum said.
Thirty-four percent of stores surveyed by her office did not post
refund and return policies
Gotbaum released the report’s
findings this morning in Midtown Manhattan, near Beeper2000T-Mobile,
which charges customers a restocking fee of 35 percent. Topping
the survey was a Tompkinsville-Staten-Island-based T-Mobile branch
that charges a $200 restocking fee.
Restocking fees are normally between
10 and 20 percent of the original purchase price, but Gotbaum’s
office identified other stores, including American Design Furniture,
located in Astoria, Queens, that charge a 30 percent restocking
fee. Other stores that charge restocking fees but do not post
any information on these fees include Gracious Home at Broadway
and 67th Street in Manhattan, Sharper Image at the South Street
Seaport, and 1-800-Mattress on 86th Street in Brooklyn.
The Consumer Protection Law of the
City of New York requires establishments to conspicuously post
return/exchange policies and, if policies aren’t posted,
allow consumers to claim a full refund within 20 days of purchase.
“Consumers need to know their rights. If a store doesn’t
post information about its restocking fee, consumers don’t
have to pay it,” Gotbaum said.
The Office of the Public Advocate
conducted a survey of 163 retail establishments citywide, including
94 in Manhattan, 15 in the Bronx, 18 in Brooklyn, 11 on Staten
Island, and 25 in Queens. Of the stores surveyed, 55, or 35 percent,
did not post their return/exchange policy and 71, or 44 percent,
charge restocking fees. Nineteen stores charge restocking fees
but did not post any information about the fees.
Gotbaum is calling on the New York City Department of Consumer
Affairs to better enforce rules and regulations related to return
and exchange policies and increase consumer awareness about restocking
fees and other hidden costs.
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