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U.S. NEWS Saturday 10 February 2018

Citing fraud, LL Bean imposes limits on its return policy

By DAVID SHARP es honor the spirit of the
FREEPORT, Maine (AP) — founder's original guaran-
L.L. Bean's generous return tee, said Shawn Gorman,
policy is going to be a little L.L.'s great-grandson and
less forgiving: The com- the company's chairman.
pany, which has touted its Internal surveys indicate 85
100 percent satisfaction percent of customers are
guarantee for more than a OK with the new return poli-
century, is imposing a one- cy, he said. "There is no one
year limit on most returns to in this family who would've
reduce growing abuse and allowed this to happen if
fraud. they thought that L.L. would
The outdoor specialty re- be upset with us, like, if he
tailer said returns of items would be rolling over in his
that have been destroyed grave," Gorman said.
or rendered useless, in- The news drew a mixed
cluding some purchased reaction on social media,
at thrift stores or retrieved with some excoriating the
from trash bins, have dou- retailer and others saying
bled in the past five years, the change is justified.
surpassing the annual rev- Maine native Justin Franz
enue from the company's recalled that virtually all
famous boot. kids returned to school
"The numbers are stagger- In this Friday, Feb. 2, 2018 photo customers leave the LL Bean retail store in Freeport, Maine. The each fall with a brand-new
ing," CEO Steve Smith told outdoor retailer is imposing a one-year limit on most returns to reduce growing abuse and fraud. backpack from L.L. Bean
The Associated Press. "It's (AP Photo/Robert F. Bukaty) when he was a kid. q
not sustainable from a busi- conditions.
ness perspective. It's not L.L. Bean's announcement
reasonable. And it's not fair in a memo to employees
to our customers." and in a letter to custom-
L.L. Bean announced Fri- ers represents a seismic
day that it will now accept policy shift for a 106-year-
returns for any reason only old company that used its
for one year with proof of satisfaction guarantee as
purchase. It will continue to a way to differentiate itself
replace products for man- from competitors.
ufacturing defects beyond Leon Leonwood Bean,
that. the company's founder,
The company is also impos- is credited with launching
ing a $50 minimum for free the policy when 90 of his
shipping as part of a belt- first 100 hunting shoes were
tightening that includes returned. He earned good-
a workforce reduction will by returning customers'
through early retirement money, and he came back
incentives and changes in with a better boot. Thus the
workers' pension plans. satisfaction guarantee was
The Freeport-based com- born. But the merchant
pany joins a list of other never intended for his sat-
retailers that have been isfaction guarantee to be-
tightened return policies. come a lifetime replace-
Outdoors retailer REI, which ment policy, company
was once jokingly dubbed executives said. Abuse of
Rental Equipment Inc. and the generous return policy
Return Everything Inc. be- with no time limit has ac-
cause its unlimited returns celerated thanks to people
policy, imposed a one-year sharing their return stories
restriction five years ago. on social media, they said.
Other retailers have been The family-owned com-
narrowing the window for pany is prepared for a
returns or imposing new backlash, but the chang-