[riffparker]

Do not pass go, do not collect $200
Returns becoming problematic for some consumers

In the article above Mr. Tantoco mentions that his "elite" card members enjoy special benefits when it comes to returning items. As many Americans are about to find out, returning items at stores in the U.S. is not as simple as it once was. The Return Exchange, (TRE), is a new service available to retailers that operates in a manner similar to that of credit agencies. Stores such as Limited, Guess and Staples have contracted with TRE in an effort to curb fraudulent returns.

Customers who wish to make a return at one of these stores are required to furnish their identification, (regardless of if they purchased with cash and have a receipt), which the store clerk then swipes through a machine similar to a credit card reader. If the database shows your return history to be suspect you're out of luck and the return won't be accepted. Consumers do have the ability to obtain a copy of their "return-activity report", (800-652-2331), and to correct errors but they do not state what standards are used, (the methods remain secret to "reduce fraud"), so there is no way to be able to determine exactly why your return was denied.

The company has a fairly robust privacy policy, and states they will not sell your personal information. However, it isn't quite clear whether the information that was scanned is in any way available to the merchant for their own purposes, such as in house advertising. They also note "This Privacy Policy will change as needed to stay current with privacy laws, consumer expectations, and changes in TRE’s business" which doesn't inspire confidence if TRE suddenly finds their current business model inadequate while they are sitting on a wealth of consumer information.

TRE says that signs are posted within stores ensure consumers are aware of it being used but in both of the articles below consumers were caught unaware of the practice when they went to return items. There is also no indication if the signs stores are supposed to use actually explain the program or if they are a generic, (and relatively useless), sign that just states "This store uses TRE".

Sources:
The Wall St. Journal, (Reprinted in the Deseret News)
Fortune Magazine(Subscription required to read archives).