Massachusetts AG Offers Consumers Advice For Holiday Shopping Season

November 21, 2007 -- BOSTON - Today, Massachusetts Attorney General Martha Coakley offered the following advice to consumers to protect themselves as they kick off the holiday shopping season this Friday. Shop wisely and remember important consumer tips so that you don’t end up with unnecessary headaches come January.

1. What Are My Rights If I Purchase A Gift Card?

* Under Massachusetts Law, a gift certificate or a merchandise credit must be redeemable for 7 years from the date of issuance. The seller must indicate the date of issuance and expiration date on the face of the certificate.
* Once a consumer redeems the gift certificate or gift card for 90% of its value, the balance is redeemable in cash.
* It is important to note that even if a gift card carries a Visa or Master Card logo, the card likely is not actually a credit or debit card and does not offer the same protections as a regular credit card.
* Some gift card issuers charge a dormancy fee or a “reactivation fee” if the card has expired. While these fees are illegal if issued by a state chartered bank, they may not be prohibited if the gift card is issued by a national bank.
* Read the accompanying literature that comes with the card or check out the website of the company you are purchasing the card from to ensure that you know what you are getting.

2. What Types of Return Policies Can A Store Have?

* A Massachusetts retailer can have any refund, return or cancellation policy it wants, but that policy must be disclosed to the consumer prior to the transaction being commenced.
* It is not sufficient if the policy is only listed on the sales receipt, as you only get that after the sale.
* If no return policy was disclosed, goods may be returned within a reasonable period of time.
* This policy does not apply to defective goods—goods which cannot be used as intended, such as the toaster that will not toast, the television that does not get a picture. The store is required to give you a choice of a refund, repair or replacement.
* Be sure you know the store's return policy, so you can tell your intended gift recipients. Remember, if you don't want to have to convey what you spent but still allow the recipient the option of exchanging a gift, many stores offer "gift receipts" without the price on them so a recipient can return or exchange the gift if it is not what they want. You may want to request such a receipt if the store provides this service.

3. How Can I Protect Myself While Shopping Online?

* Only do business with companies you know.If you are intent on doing business with a company you know nothing about, research where the company is located and call the local Better Business Bureau to check on their reputation. Consumer’s can also check with the Attorney General’s Consumer Hotline by calling (617) 727-8400.
* Though many websites offer secure transactions, it may be safer to order by phone or mail. If you decide to purchase online, you may want to pay with a credit card as it gives you the most consumer protection, including the right to dispute a charge if the item is not as represented.
* Check the business's website for Return Policies and Delivery Policies. If the website does not provide information about delivery dates and returns, be cautious about proceeding with the purchase.
* Order as early as possible. If it is important to you to get a gift to someone by a particular date, order as early as possible and check the delivery dates specified by the site.
* If you are doing business with a company outside the U.S., know how much you are paying. Are the prices stated on the website in U.S. or foreign currency? Research contact information for the company. It is especially important to note that even if you are making purchases with a credit card, consumer protections may not extend to purchases made outside of the U.S. The general limit for consumer protections on credit cards is within your state, or 100 mile radius of your home, though some credit card companies will extend those protections—ask first, shop later.
* Federal and state laws protect consumers from fraudulent use of credit cards and debit cards. You are only responsible for $50 under state law if your credit or debit card has been used for purchases you did not authorize. Some credit card companies actually provide for $0 liability for unauthorized use.
* Online Auctions make it difficult to know EXACTLY who you are doing business with. Check out the website's consumer protection policies-many offer insurance or other assistance if you are a victim of fraud. If you have made a successful bid, try to make direct contact with the seller instead of just communicating through email. Pay for your purchases with a credit card. You may also want to consider using an escrow service to protect your money.

The Attorney General’s Website, www.mass.gov/ago, offers additional tips on retail rights and consumer protections.

Source: Massachusetts Attorney General