Consumer Attitudes Toward Policy Abuse

A study on policy abuse revealed the difficult balance merchants face in managing generous return policies. Remove them, and you risk losing a competitive edge. Keep them, and revenue takes a hit.

Ninety-three percent of respondents believed that offering flexible returns and refunds is crucial  for winning and retaining customers. Yet, 90% have experienced significant costs due to policy abuse, driven by both professional fraudsters and first-party misusers. Understanding why ordinary consumers commit policy abuse is vital to addressing this challenge effectively.

• Consumers chase deals, often bending the rules. Over half (53%) of respondents admitted to coupon and promotion abuse, followed by bracketing and reseller abuse.
• Financial pressures encourage misuse. Inflation, debt, and high living costs push consumers to exploit loopholes. Surprisingly, policy abuse spikes during summer months, doubling rates of casual offenses like wardrobing and coupon misuse compared to the holiday season.
• Guilt rarely deters offenders. Misusers justify their actions, believing large retailers are unaffected or owe them for past poor experiences. Some are unaware they’re breaking policy altogether.
• Behaviors differ by region. Americans lead in policy abuse, especially regarding wardrobing and item-not-received (INR) claims, showing notable differences from U.K. consumers.