USA TODAY International Edition
GUARANTEES FADING AWAY
In an era of disposable products, fewer stores are sticking to once-generous return policies
Some lifetime guarantees last longer than others. ❚ A small minority of shoppers who have returned items salvaged from yard sales or purchased decades ago to get an upgraded version or a cash refund have left some retailers saying enough is enough. ❚ More retailers are changing once-generous return policies. Lifetime guarantees were thrust into the forefront last month when L.L. Bean said that in the wake of increasing abuse, it was putting a cap on its legendary open-ended pledge, limiting most returns to one year — a move that prompted outrage and at least one lawsuit by a customer who said the company was now “breaking ... its promises.”
Bean follows outdoor gear and clothing retailer REI, which dropped its lifetime guarantee in 2013. Membership warehouse retailer Costco began limiting its lifetime returns policy to just 90 days for certain major electronics like TVs and computers. Car maker Chrysler and jewelry maker Silpada have also pared back open-ended policies.
“Part of the reason is that retailers are very cost-conscious and have become increasingly concerned about the amount of abuse associated with lifetime guarantees,” said Neil Saunders, managing director of the retail consultancy GlobalData.
Such lifelong guarantees are increasingly becoming casualties of an era of disposable products and fast-changing fashion. And with competitive pressures only rising, companies don’t want to bear the costs of endlessly replacing an array of dated products.
“I think it was a sincere way that sellers inspired confidence in their products in the minds of prospective purchasers,” said Edgar Dworsky, founder and editor of Consumer World, an online consumer education site and resource guide.
But today, lifetime guarantees, from open-ended return policies to unending warranties, “are a dying breed.”
Yet several retailers — Eddie
Bauer, Nordstrom, Patagonia, to name a few — are holding firm.
“Our policy is guaranteed, period, and we mean every word,” said Michele Casper, spokeswoman for outerwear retailer Lands’ End. “It is unconditional, and it’s part of how we do business.”
The company, whose policy says a dissatisfied customer can return a purchase at any time, isn’t just talking about offering a refund for a lunch box or replacing a pair of snow boots.
In the 1980s, Lands’ End sold an iconic London cab that was featured on the cover of its holiday catalog for $20,000. When the customer reached out to the retailer 21 years later, saying he wanted to return the taxi, Lands’ End gave him his money back and reclaimed the car — which now sits at the company’s main office in Dodgeville, Wis.
“That’s one of the more unusual situations, but it ... encompasses what we stand behind,” Casper said.
Outdoor clothing and gear seller Patagonia touts its “ironclad guarantee.” Though it will charge a small fee to fix items damaged from regular wear and tear, the company will take back items years after they were purchased, attempt to repair them and, if it decides the item is worn out and can’t be fixed, talk with the shopper about replacing it or receiving a gift credit.