License Swipe Return Policy Turning Off Customers

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Millions of shoppers will be retuning items bought by or for them after the holidays. Most will have learned by now that returning an item is much easier with a sales receipt. And most stores will oblige them with a simple exchange or cash return—as long as they have a valid receipt. 

 

But it seems some stores have decided that even with a valid receipt, they expect customers to hand over their driver's license and have it scanned into the store’s computers. Where this information goes is unclear. And in this day of rampant identity fraud, that should raise concerns among many customers—people who will surely opt to shop elsewhere rather than give out personal information.

 

Stores like Michaels, for example, have decided that even if you return a $2 item with a valid receipt (paid for in cash)—they still insist on scanning your driver’s license into their system. This policy is turning off customers who resent being treated like criminals. Other stores requiring license scans for various types of returns include The Finish Line, Home Depot, Target and Victoria's Secret.

 

Some lawmakers are upset with the whole idea. “They have no right, in my view, of swiping my driver’s license,” said Peninsula Congresswoman Jackie Speier. “I will never let someone scan my driver’s license.” While the practice of swiping driver’s licenses and storing the data is illegal in some states, there are loopholes in the law that allow stores to do so. California civil code currently allows retailers to swipe one’s ID when investigating fraud, abuse or misrepresentation. Speier believes a return with a valid sales receipt does not fall under those exceptions.

 

According to the National Retail Federation, nearly 33 percent of retailers ask to see a photo ID on returned items. But some, like Michaels, will swipe a driver's license to capture the information off the magnetic strip—information that includes name, address, date of birth, even restrictions that may include medical information, in some cases.

 

A typical sales receipt from stores that scan IDs says the data is recorded for “return authorizations only.” But who is checking to make sure that this data is not being sold, transferred or used by other organizations? Most customers will tolerate a scanned license if they don’t have a sales receipt, but for those that do, scanning this information just doesn’t pass the “smell test.”

 

The problem for stores is that such draconian return policies can hurt business. Customers will think twice about buying from a store with this practice. Word will get around, especially after the holidays, when most people have items to return. A “license swipe” return policy with valid receipt will simply force many honest customers to shop elsewhere.

 

Image courtesy of Ambro/FreeDigitalPhotos.net

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  • Alex Kecskes
    Alex Kecskes
    Thanks, Sharon, for your comment and suggestion
  • Sharon H
    Sharon H
    This tells me where not to buy in the first place. On another note, a person who is a member of congress is a congress member - not a congressman or congresswoman. Job titles need no gender designation.

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