| Releases & Statements
As the holiday shopping
season picks up, it is welcome news that the Department of Consumer
Affairs (DCA) is following my lead in informing consumers about
scams they may encounter in the course of their bargain-hunting.
In particular, shoppers should be on the look out for hidden fees
and fine print.
In a June 2005 report, I called on the State to strengthen laws
protecting consumers from loopholes that allow retailers to profit
on unredeemed gift cards. An estimated $300 million in gift card
money went back into the pockets of retailers in 2004 and millions
more were lost on fees charged for inactive cards. Later that
summer, I turned my attention to so-called “restocking”
fees. My office surveyed 163 retail establishments citywide and
found that 35% did not post their return/exchange policy, 44%
charged restocking fees, and 12% charged restocking fees without
posting any information about them. My office has also published
a cell phone consumer buying guide. Twenty-eight out of the 55
stores my staff visited make customers sign a contract in addition
to the cell phone company contract, binding them to pay an extra
fee for early cancellation. That extra fee runs from $50 to $400!
I encourage the DCA to carry on this effort to inform consumers
of their rights.
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