ST. LOUIS -- With the start of the holiday shopping season, the Better Business Bureau urges consumers to avoid pitfalls that can dampen the enjoyment of the holiday season.
Gift cards
As a result of the declining economy, the number of retailers closing their doors has increased substantially, leaving confused shoppers wondering what will happen with gift cards from retailers who close or file for bankruptcy. If a company has filed for bankruptcy protections from Chapter 11 and is continuing to do business, the company will likely continue to honor gift cards. If the company has filed for bankruptcy under Chapter 7, however, the consumer will need to file a claim as an unsecured creditor with the bankruptcy court in an attempt to be reimbursed for the gift card.
Consumers also much realize that some gift cards have limited life spans, service fees and may expire if not used within that time period.
"Gift cards are an efficient, easy way to give gifts to people on your holiday list. Gift cards can also become a nightmare if the card expires or if the company goes out of business before the card is used," said Michelle L. Corey, BBB president and CEO. "The BBB recommends consumers consider the risk of gift cards along with the benefits before making a purchase."
Tips for online shoppers
Make sure the online merchant uses anti-fraud technology to protect your payment card information
Shop only at Internet merchants you know and trust. Don't do business with any retailer that does not provide its physical address and a contact phone number for customers. If in doubt, check with the BBB at www.stlouidbbb.org.
Get all the details. Know how much the product or service costs, if there are shipping and handling charges, the delivery time frame, if a warranty or guarantee is offered, the seller's privacy policy and the cancellation or return policy. Print out a copy of the order confirmation in case it is needed later.
Beware of e-mails offering cut-rate prices on popular toys, software or other gifts. If the offer sounds too good to be true, it probably is.
Do not click on any links within any unsolicited e-mail. If an e-mail asks for personal information use caution. Legitimate businesses do no send e-mails claiming problems with an order or an account to lure the buyer into revealing financial information. Call the contact number on the Web site where the purchase was made to ask if there is a problem with the transaction.
Shopping by catalog or shopping networks
Mail order catalogues and shopping networks can be a convenient alternative to crowded stores with long check-out lines, but shoppers should proceed with caution and consider the following tips:
Do not rely on a photograph of a product, which may make the product look larger or of better quality than it actually is. Instead, read the product's description. Look for the same or comparable item in a local merchant's store to help determine if there are potential savings.
Be sure to complete all the required information on the order form. Incomplete or missing information may cause a delay in order fulfillment.
Look for the company's return policy and if it isn't state, ask about it before placing an order. Mail order items should always be paid by credit card, check or money order -- never by cash.
As soon as merchandise arrives, examine it thoroughly to be certain that the items offered are in undamaged condition, and the order is correct.
Exchanges and refunds
Returns after the holidays are a reality for many shoppers. Advance planning can prevent headaches for a gift recipient. Stores are not obligated to accept items for refund, exchange or credit unless the item is defective or misrepresented. Before purchasing a gift, determine the store's refund and exchange policy.
Some retailers only allow a customer to exchange one item for another, while others allow returns for most reasons and will provide a credit or refund. Refund policies often require that merchandise be returned within a specific period of time and in new condition. Many stores also require a sales receipt and some may charge a restocking fee.
Holiday toy safety
Keep the age and abilities of the child in mind when buying toys. Manufacturers often list age recommendations on the package, but you should use personal judgement as well. Inspect the toys carefully. Remember that sharp edges may cut, moving parts may pinch and removable parts can be a choking hazard. Ensure that toy chests have air holes and all fabric products are flame resistant. Check for a UL seal on all electric toys.
If purchasing a stuffed toy or doll, look for a label that states it is made of washable/hygienic materials. Toys with cords or strings may be hazardous for infants or very young children because they create a strangling hazard. Rattles and squeeze toys should be large enough to prevent swallowing and becoming lodged in an infant's throat. Toys and electronic devices which produce loud noises can damage hearing. Always remember siblings share toys so a toy with small parts for a six-year-old can find itself in the hands of a three-year-old.
For more information on a company, call the BBB at 314-645-3300, or go to www.stlouisbbb.org.