Returns Fraud - Everyday Shoppers Pay the Price in Lost Privacy

August 3rd, 2006

Great article about everyday privacy on Reuters Today called “Product Returns: Consumers balk at giving personal info”

I recently tried to exchange sizes on a cash purchase at the Children’s Place here in San Francisco. Upon the exchange I was walked through a series of questions requiring my name, address, telephone number, etc. All of which I refused, requiring store manager intervention.

There are two issues arising in these situations:

1) Retailers do not provide adequate notice and information about any type of personal data collection at the point of sale. Combined with woefully undertrained and unknowledgeable store clerks, who give misinformed or inadequate answers — how can you blame customer unease at handing over personal information? I can guess more accurately why my personal data is being collected than the store clerk who may or may not have been instructed to respond.

2) At least in cases where your infomation is collected for marketing purposes consumers can see potential value in coupons or special offers. In this case you are asking law-abiding individuals to potentially expose thier personal information to a data breach because retailers have a 9% fraudulent returns problem.
So it doesn’t surprise me at all that individuals lie about thier information when asked, or that they balk at giving thier driver’s licenses to retailers. I encourage consumers to speak up about non-essential data collection, and demand reasonable disclosure about why and how the information is being used.

Entry Filed under: All, In the News, Privacy 365