Question

According to the Electronic Industries Association, questionable returns have become the toughest problem plaguing the consumer electronics industry. Some consumers purchase electronic equipment to use once or twice for a special occasion and then return it—a radar detector for a weekend getaway or a camcorder to record a wedding. Or a customer might return a cordless telephone because he cannot figure out how it works. The retailer’s staff lacks the expertise to help, so they refund the customer’s money and ship the phone back to the manufacturer labeled as defective. Excessive and unwarranted returns force manufacturers to repackage and reship perfectly good products, imposing extra costs that squeeze their profits and raise prices to consumers. One retailer returned a cordless telephone that was two years old and had been chewed up by a dog. What ethical obligations do consumers and retailers have in these circumstances?

 

 

Answer 1

There is no legal obligation to save manufacturer's money. However, there is also an impact on innocent consumers who have to bear the cost of unnecessary returns. In an ideal situation, retailers would better train staff member to identify products that are actually defective. They could also work out a better return police for temporary purchases so that they do not have to sent back to the manufacturer.

In this case, consumers are taking advantage of the system for their own benefit. They purchase the good for a temporary use and then receive all their money back by claiming the gadget is defective. This is essentially fraud and is unethical. They should not purchase and return products they have no intention of keeping.

There is no legal obligation to save manufacturer's money.