SHOPPERS are at risk of facing fines worth up to $5,000 in eight US states due to wardrobing laws.
While they are in place to prevent return fraud, consumers may not even be aware that they are breaking the obscure laws.
Wardrobing is considered a type of return fraud[/caption]
Shoppers who engage in wardrobing can face criminal charges depending on the situation[/caption]
Retailers lose billions of dollars on an annual basis due to consumer theft and fraud, with “wardrobing” being one of the most commonplace shopping frauds.
This practice, fraudulent depending on a store’s policies, involves purchasing an item with the intention to use or wear it a single time before returning it.
Roughly one in five consumers has engaged in wardrobing, according to a recent study, with 43% of shoppers aged 16 to 24 admitting that they have engaged in the practice.
If a shopper lies and says that they never wore the item, but the retailer can prove that they are lying, then the customer could get in real trouble – even facing criminal charges.
Although it is difficult for a retailer to prove the return fraud, surveillance footage, the shopper’s transaction history, and other evidence can be used against the customer.
While many shoppers consider wardrobing to be a victimless crime, it can have serious consequences.
In general, if a wardrobing case is prosecuted under state statutes related to theft or fraud, customers can potentially face criminal charges such as a misdemeanor or felony.
A misdemeanor encompasses wardrobing cases where lower-value items are involved and can result in fines up to $1,000 and possible jail time.
Consumers may be charged with a felony if higher-value goods are involved or if they are a repeat offender, potentially facing heavier fines up to $5,000 or more and prison time.
Here are eight states where committing wardrobing can get you in big trouble.
GEORGIA
In Georgia, wardrobing is considered a form of return fraud, meaning that shoppers who commit the practice can face legal consequences under existing statutes.
Although not explicitly defined in the state’s laws, wardrobing falls under the broader category of fraudulent retail practices, such as theft by deception.
Wardrobing may also fall under Georgia’s refund fraud statute, specifically when customers use false or fictitious information or ID to get a refund.
Although the practice may not always involve falsifying information, it can still be considered a violation if a shopper uses deception to receive a refund.
Depending on the value of the item, wardrobing may be prosecuted as a misdemeanor or a felony theft charge if the customer is caught.
FLORIDA
In Florida, wardrobing can be considered a form of return or receipt fraud and can lead to legal repercussions.
Florida statutes define return fraud as obtaining or using a receipt in a fraudulent manner.
This could include wardrobing, especially when the practice is linked to fraudulent activities.
Wardrobing constitutes first-party fraud because the shopper is knowingly misrepresenting themselves in order to gain an unfair advantage over the store.
Although the practice generally does not breach specific laws unless accompanied by other actions that constitute fraud or theft, shoppers who are caught and prosecuted could face criminal charges.
What is wardrobing?
Wardrobing is a type of return fraud.
It is a practice that involves a consumer purchasing wearable or usable items with the intention of returning them right after use.
For example, a shopper may buy a pricey outfit and return it after wearing it once, or return a book after reading it.
The practice is fairly common, with one in five shoppers admitting to having engaged in wardrobing at some point.
MICHIGAN
In Michigan, although wardrobing is not explicitly illegal under a specific statute, shoppers who engage in the practice can still face legal consequences, as it is seen as a form of return or retail fraud.
Like in Florida, wardrobing is viewed as a deceptive practice or first-party fraud because it involves misrepresenting oneself to gain an unfair advantage.
Consumers in Michigan could face charges related to return fraud by deceptively taking advantage of a return policy, such as by returning a used item and lying about its condition.
The state also has laws regarding retail fraud, which encompasses practices such as altering price tags, failing to pay for merchandise, or returning stolen goods for a refund.
If a customer is caught and the store can prove they committed retail or return fraud, these individuals could face criminal charges with penalties varying based on the value of the items involved.
CALIFORNIA
Wardrobing is viewed as a form of return fraud in California, often prosecuted under existing theft laws.
The specific charge that shoppers who engage in the practice face depends on the value of the merchandise returned.
If the value of the merchandise is less than $950, it is considered petty theft – a misdemeanor punishable by up to six months in jail and a fine of up to $1,000.
If the merchandise costs more than $950, the shopper can be charged with grand theft, which can be charged as a misdemeanor or felony.
These shoppers face years of potential jail or prison time depending on the value of the goods involved.
ARIZONA
Although wardrobing is not necessarily considered a criminal offense in Arizona, it is viewed as a deceptive practice or first-party fraud.
The practice can fall under the category of return fraud, as it involves misrepresenting an item’s condition in order to receive a refund.
Retailers in Arizona generally have the right to set their own return policies, although these policies must be clearly posted.
If not posted, the store is required to allow shoppers to return any item purchased within 60 days.
However, if a retailer can prove that the customer committed wardrobing, it could potentially press criminal charges.
ILLINOIS
Wardrobing may be seen a form of return fraud in Illinois and can have legal consequences under existing laws, especially ones related to retail theft.
The state has laws addressing retail theft, which can encompass actions beyond simply stealing merchandise.
Returning a worn or used good, especially if the customer misrepresents the item’s condition or violates the store’s return policy, could face retail theft charges.
Like in other states, wardrobing is considered a deceptive practice or first-party fraud.
While Illinois law does not outline specific rules about store return policies, retailers can set their own terms and conditions for returns as long as they are clearly displayed.
If a store policy prohibits the return of used or worn items, then they can choose to deny the return and even take further action if they suspect fraud.
As a result, individuals who engage in wardrobing in Illinois could face criminal charges if their actions are viewed as retail theft or fraudulent.
By the numbers
- Retailers have $166 million of merchandise returns for every $1 billion in sales
- The average retailer loses $10 to return fraud for every $100 of returned merchandise accepted
- Return fraud scams such as wardrobing collectively cost the retail industry $12.6 billion in lost sales annually
- Retailers received $743 billion in returns and lost $101 billion to return fraud in 2023
Source: National Retail Federation
NEW YORK
Although wardrobing is not a separate crime in New York, it can be recognized as a form of return fraud and a deceptive practice.
State law does not mandate that retailers accept returns, but stores that do not accept returns must clearly post a notice.
Retailers without a no-return policy posted are required by law to accept returns of unused, undamaged items within 30 days of purchase with a receipt.
When a shopper attempts to return a used item, however, wardrobing can be prosecuted as larceny in New York.
The degree of the charge, whether a misdemeanor or felony, depends on the value of the items involved.
TEXAS
Under Texas law, wardrobing can fall under retail or return fraud and is considered a form of theft by deception.
Wardrobing takes advantage of lenient return policies that accept used or slightly worn items, and shoppers who commit the practice can face varying charges depending on the value of the items involved.
For example, if the property is valued between $750 and $2,500, then they could be charged with a Class A misdemeanor.
If the items are valued between $2,500 and $30,000, or if the customer has two or more prior theft convictions, they could be charged with a felony.
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