Returnless Refunds: 4 Risks and How to Mitigate Them

By: Michele Marvin, Vice President of Marketing, Appriss Retail

A returnless refund—refunding or replacing a consumer’s purchase without requiring that the item be returned—is an unpublished option retailers have discretely used for years. The surge in ecommerce has increased its popularity as retailers use it to avoid high return shipping and handling costs, especially for low-value or damaged items. About 50% of the people who experience this type of service appreciate the ease and would shop the brand again.

What risks does a retailer face when offering returnless refunds?

● Collusion – Store associates and call center representatives can engage in sweethearting.

● Discount seekers – A consumer claims an item which arrived in pristine condition is damaged and wants a discount to keep it. Getting the item free is a bonus.

● Repeaters – Having discovered the option, the consumer tries to trigger the offer again to accumulate more for personal use or reselling.

● Return fraud – When a consumer possesses two of an item, and wants only one, they may try returning one to the store in hopes of making a profit.

Returnless refunds — risks that need to be managed

On the NBC Today Show, Amazon and Walmart were quoted as saying that they want consumers to have a positive experience; this may include a returnless refund.

Retailers need to set clear guidelines for offering the option. Does the retailer know the consumer’s shopping and return habits with the company? Is the consumer a high-value shopper? Can they prove the item is unusable? Unfortunately, this level of one-to-one attention may not scale, particularly online returns growing as in 2021 when 20.8% of ecommerce purchases were returned.

Even with this information, a CSR probably will not be able to make an informed decision without advanced technology.

● Exception Based Reporting (EBR) can be used to uncover collusion through the call center and in-store.
 
● Consumer-focused artificial intelligence (AI) examines the consumer’s in-store and online purchase and return behavior in real-time and uncovers patterns of risky behavior. AI minimizes the impact of returnless refunds while keeping consumer loyalty high.

Fight return fraud with AI, download Order Claims: A Growing Source of Ecommerce Fraud.
 

Council on Criminal Justice - Property Crimes Up 20% & Robberies Up 19%
Homicides, Gun Assaults Fall Modestly in Major U.S. Cities as Robberies Spike
in First Half
Washington, D.C. – Murders and gun assaults in major American cities fell slightly during the first half of 2022, while robberies and some property offenses posted double-digit increases, according to a new analysis of crime trends released by the Council on Criminal Justice (CCJ).

Examining homicides in 23 cities that make data readily available, the study found that the number of murders in the first half of the year dipped by 2% compared to the first half of 2021 (a decrease of 54 homicides in those cities). Gun assaults also fell, by 6%, during the first six months of this year, while overall aggravated assault counts rose 4%. Robbery jumped by 19%.

The study’s authors noted that the murder rate is still 39% higher than it was during the first half of 2019, before the COVID-19 pandemic.

In other findings, trends in most property crimes reversed from the first two years of the pandemic. Residential burglaries (+6%), nonresidential burglaries (+8%), and larcenies (+20%) all rose in the first half of 2022.

Noting the spikes in acquisitive crimes such as larcenies (mostly shoplifting and thefts from vehicles) and robberies, the authors said the uptick could reflect a return to somewhat normal living conditions, even as new variants of COVID have emerged. Opportunities for retail theft and commercial robberies have grown as stores have reopened, and the increase of people on the streets creates more targets for street robbers. Another factor may be “destabilizing economic conditions, such as the rise in food, fuel, and housing prices that began in the final months of 2021 and accelerated sharply in the first half of 2022,” the authors said.

In January, CCJ’s Violent Crime Working Group produced a roadmap of 10 essential actions that cities can take now to reduce violence and save lives, without the need for new laws or enormous expenditures. counciloncj.org

From NYC to Chicago to Philly to DC to San Fran - Crime & Public Safety Are The Top Concerns
Here’s how many San Franciscans say they’ve been the victim of a crime, according to new poll
Opinions and feverish debates about public safety have shaped the most momentous political decisions in San Francisco this year, from Mayor London Breed declaring a state of emergency in the Tenderloin, to the historic recall of a district attorney.

But in a city where leaders are constantly groping for solutions, some residents still feel afraid to walk home alone or lock their bikes downtown. A sweeping poll commissioned by The Chronicle drew sobering results: Nearly half of respondents said they were victims of theft in the last five years, while roughly a quarter were physically attacked or threatened. The majority had negative impressions of law enforcement.

It comes at a tense moment, when videos of unchecked shoplifting or unprovoked street violence are ricocheting on social media, and confidence in police and other city leaders is dwindling. With 41% giving SFPD a poor or very poor rating.

Forty-five percent of people surveyed for the poll said they had an item stolen within the last five years. Proportionally, Black and mixed-race respondents felt a more severe impact than other groups, with a majority — 54% of Black respondents and 55% of mixed-race respondents — reporting they had suffered theft. Property crime rates were lower for white residents, 43% of whom had a possession swiped within the time period.

Hollins views the poll data as evidence that the traditional legal system has failed to create a safe environment, and that San Francisco should invest in alternatives, such as substance abuse treatment or civilian responders for low-level crimes. The city was among many that tried a series of reforms after George Floyd’s murder in 2020, though it seemed to retreat two years later, most notably with the recall of progressive district attorney Chesa Boudin. sfchronical.com

San Franciscans agree with right-wing media on one thing. This city is broken

Federal judge imposes limits on L.A. County jail after ACLU sues over ‘barbaric’ conditions

IL & Chicago Politicians Suing to Repeal No Cash Bail Law - SAFE-T Act
Will County prosecutor sues ILL. Gov. Pritzker & other top Democrats over law that does away with cash bail
Democratic Will County State’s Attorney James Glasgow filed a lawsuit Friday against Gov. J.B. Pritzker and other top state Democrats alleging that they violated the state’s constitution when they pushed through sweeping criminal justice reforms last year.

The lawsuit from Glasgow, an outspoken critic of the 764-page Safety, Accountability, Fairness and Equity-Today law, or SAFE-T Act, signed into law February 2021, comes less than four months before several provisions of the year-and-a-half-old law, including a controversial measure to abolish cash bail, go into effect on Jan. 1.

The other defendants include Illinois Attorney General Kwame Raoul, House Speaker Emanuel “Chris” Welch and Senate President Don Harmon. Kankakee County Democratic State’s Attorney Jim Rowe filed a separate lawsuit Friday against top Democrats, also alleging the passage of the law violates the state constitution.

But Glasgow and the law’s other opponents worry the no-cash bail provision will weaken police and embolden criminals. On Friday, Glasgow said in a statement that his suit “is not about politics; it is about public safety.” chicagotribune.com

Editor's Note: With Citadel, Boeing, and Caterpillar leaving Chicago because of violent crime and now last week's McDonald's CEO 'soring crime' warnings, Chicago is indeed a "city in crisis." Couple that with Mid-Term elections around the corner and the new no-cash bail law going into effect, it's not surprising to see a Democrat County Prosecutor file the lawsuit and so many bi-partisan defendants joining in. Gus Downing

Trying to Stop Catch-and-Release in Chicago
Illinois’ no-cash bail law will turn the state into ‘The Purge’
Law-enforcement officials across the state are sounding the alarm. One mayor, Orland Park’s Keith Pekau, called the act “dangerous” and warned that communities and victims of crime will lose “their constitutional rights.” A number of Illinois state attorneys wrote in the Chicago Tribune that there had been spikes in crimes since the passage of the SAFE-T Act, and the upcoming abolition of cash bail would create major safety issues.

The Safety, Accountability, Fairness and Equity-Today Act will completely eliminate cash bail for the majority of defendants charged with criminal acts. Judges will decide whether or not to release defendants on a case by case basis, based on if they feel a person poses a threat to the community or is a flight risk. Seeing as many Illinois judges rule like progressive activists, it’s likely they will send many criminals back into communities without hesitation. nypost.com

Chicago Overall Crime Up 38%, Thefts Up 65%, Murders Down 15%
Another weekend of violent crime in Chicago

‘We are going to make adjustments:’ Top cop following carjacking, robbery, shootings, ‘gridlock’ that marred pre-dawn Mexican Independence Day celebrations in downtown Chicago
Tens of thousands of revelers and cars donning Mexican flags and colors took over Downtown into the early hours of Saturday in celebration of Mexican Independence Day.

Among the excited crowds enjoying themselves, at least two men were shot and others were robbed and carjacked downtown, officials said, adding that most of the festivities were not violent.

Additionally, car caravans and drag racing created “total gridlock” in some places, causing some people fright and others delays in getting to work, said Mayor Lori Lightfoot

Public safety was an issue Friday night, Brown said, as well as “attacks on officers” including one brawl that involved someone throwing a frozen water bottle in the face of an officer, who had to be hospitalized.

McDermott, when asked by a reporter which “de-escalation” methods police would be using, said that he witnessed those methods “every minute” the officers were out there as people were “in their face yelling and screaming,” dancing on buses or flipping them the bird. chicagotribune.com

Minneapolis Property Crime Up 65%, Violent Crime Up 25%, Gunfire Up 40%
Looks Like Minneapolis and Seattle are getting New Police Chiefs
In the first two years of the pandemic, as violent crime in other areas of Minneapolis surged, the city's downtown core saw the rate of homicides, rapes, robberies and aggravated assaults freefall by about one-third to the lowest numbers in a decade. This summer, as business and nightlife returns to a semblance of normalcy, crime is back too.

The downtown west neighborhood — bound by the Mississippi River and Orchestra Hall, and including Nicollet Mall, the Target Center and areas of concentrated nightlife and government buildings — saw a 25% increase in violent crime so far in 2022, driven mostly by robberies and aggravated assaults, according to data analyzed by the Star Tribune.

Gunfire in the area is up about 40%, according city data. The neighborhood also has seen a 65% increase in property crimes this year compared to last.

Some downtown business owners say they worry the brazenness of the crime threatens a much-needed return for the downtown economy, still recovering from pandemic depression.  startribune.com

NYC Police Response Times Up 30% Over Pre-Pandemic
Response times to NYC crimes, fires and medical emergencies soar
As the Police Department continues to deal with spikes in major crimes and a mass exodus of cops, response times to all “crimes in progress” during the past fiscal year ending June 30 increased from 11 minutes and 40 seconds to 12 minutes and 44 seconds – or 9.1%, according to Mayor Adams’ first management report. Up 30% from pre-pandemic fiscal 2019.

The Fiscal 2022 Mayor’s Management Report released late Friday – which covers the final six months of ex-Mayor Bill de Blasio’s and the first six of Adams’ – also highlighted a serious uptick specifically in response times to armed robberies, burglaries and other “critical crimes.”

Cops on average responded off 911 calls to these crimes in 8 minutes and 26 seconds, compared to 7 minutes and 52 seconds a year ago. In fiscal 2019, they arrived on average in 6 minutes and 38 seconds after a 911 dispatcher fielded the call for help. Up 29% over fiscal 2019. nypost.com

US: 97.5M Cases - 1M Dead - 93.9M Recovered
Worldwide: 617.3M Cases - 6.5M Dead - 597M Recovered

Private Industry Security Guard Deaths: 362  
Law Enforcement Officer Deaths: 796

New 'Bivalent Vaccine' Protects Against All Subvariants
New Boosters Test Covid-Weary Nation. Shots Are Here & Free. Do Americans Care?
The new vaccine campaign is one of the country’s last remaining strategies, as masks have fallen away and quarantines have diminished. So far, the rollout is methodical but muted.

The new boosters are one of the last remaining weapons in America’s arsenal against the coronavirus, now that the country has scrapped most requirements to mask, quarantine or distance as the smoldering pandemic has faded into the background for many. The push for a new vaccine — barely noticed so far by some people — will test how the country responds at a time when the sense of crisis over Covid has abated.

Millions of doses of boosters targeting the hyper-contagious Omicron variant arrived with little ceremony at pharmacies, nursing homes and clinics across the country, ready to be administered in what health officials now expect to become a yearly inoculation ritual akin to a flu shot.

The new boosters, which were authorized by the Food and Drug Administration in August, are called bivalent vaccines because they are tailored to protect against Omicron subvariants now circulating as well as the original version of the virus. nytimes.com

Americans may be more susceptible to flu this year
The consensus is - experts expecting a 'severe' flu season

How Bad Will Flu Season Be This Year?

Experts are bracing for a rough fall and winter, making the flu shot all the more critical

U.S. health officials typically look to the Southern Hemisphere for an indication of what to expect, and Australia is wrapping up its worst flu season in five years.

The past two flu seasons have been milder than usual, with low numbers of cases and few hospitalizations and deaths. Experts attribute the decline to COVID-19 precautions such as wearing face masks and social distancing. People were also traveling less during the height of the pandemic.

“Now that people are out and about without masks, traveling extensively, and once again having vacations, going to restaurants and religious services, and back to school and to the office, there are more opportunities for the [flu] virus to circulate.”

Americans also have less natural immunity to influenza because so few people were infected in 2020 and 2021, Pekosz says.  aarp.org

As California braces for severe flu season, doctors urge shots — with or without a COVID booster
It’s more critical than ever to get a flu shot this year, say Bay Area infectious disease experts. Two-plus years of the COVID-19 pandemic have created conditions — including lower influenza vaccination rates and less natural immunity than in the pre-pandemic period — that could make the upcoming flu season one of the worst in recent years. sfchronical.com

White House Taking Credit For Monkeypox Progress But Preaching Caution
White House pushes for monkeypox funding as cases fall
Monkeypox cases are declining in many areas of the country, but the Biden administration is warning that the virus still poses a danger and pushing for lawmakers to approve its multibillion-dollar funding request to combat it.

More than 23,000 infections have been confirmed in the U.S. during the outbreak, but the growth has slowed. Cases have dropped about 50 percent in the past month, according to the Centers for Disease Control and Prevention (CDC), from an average of 440 cases a day on Aug. 16 to 170 cases a day on Sept. 14.

The White House requested $4.5 billion for monkeypox response in the upcoming government spending bill. thehill.com

Is New York City Finally Returning to the Office?
Offices in the New York City area were nearly half full last week, leaping from about 38 percent during the prior week, the biggest increase since Labor Day of any major metropolitan region, according to Kastle Systems, an office security firm. On Wednesday, subway ridership surpassed 3.7 million riders for the first time since March 2020. nytimes.com

Biden says ‘pandemic is over’
President Joe Biden declared the coronavirus pandemic “over,” in apparently off-the-cuff remarks that reflect the growing sentiment that the threat of the virus has receded, even as hundreds of Americans continue to die of COVID each day.

5 Reasons Not to Ignore the Monkeypox Virus

Vendors hand kid gloves to US regulators looking at commercial surveillance online
Faced with the prospect of the U.S. Federal Trade Commission becoming active in their industry, people in the commercial surveillance end of the internet are asking the regulator to take a nuanced approach to data privacy rulemaking.

FTC members in August announced that they are considering regulations that would address harms from commercial surveillance and data security. Last week, commissioners held a lengthy public forum (its transcriptions ran 82 pages) to hear about regulatory needs from those in the community, including members of the public.

“We’re no longer shying away from using all the tools we have available to deter unlawful conduct in the market,” Slaughter said.

Much of what was said at the forum referred to business models that depend on sharing visitor information across sites and even from device to device. Above-board businesses want to gain the greatest picture of anonymized online spenders in order to increase their spending.

But what the FTC does in commercial surveillance will have broad impacts, including in biometrics. biometricupdate.com

DOJ Evaluating The Strength of a Company’s Compliance Program - Compensation Tie In & Self-Disclosure
Your Boards Should Be Aware - As Compliance Programs Go Under Magnifying Glass

Deputy Attorney General Lisa O. Monaco Delivers Remarks on Corporate Criminal Enforcement
New York City, NY ~ Thursday, September 15, 2022 - At NYU

It all comes back to corporate culture.

Last October, I announced immediate steps the Justice Department would take to tackle corporate crime. I also formed the Corporate Crime Advisory Group, a group of DOJ experts tasked with a top-to-bottom review of our corporate enforcement efforts. Comprised of a group of experts including public interest groups, ethicists, academics, audit committee members, in-house attorneys, former corporate monitors, and members of the business community and defense bar.

Our meetings sparked discussions on individual accountability and corporate responsibility; on predictability and transparency; and on the ways enforcement policies must square with the realities of the modern economy.

First, I’ll reiterate that the Department’s number one priority is individual accountability. Second, I’ll discuss our approach to companies with a history of misconduct.

Third, I’ll highlight new Department policy on voluntary self-disclosures, including the concrete and positive consequences that will flow from self-disclosure. We expect good companies to step up and own up to misconduct. Voluntary self-disclosure is an indicator of a working compliance program and a healthy corporate culture.

Fourth, I’ll detail when compliance monitors are appropriate and how we can select them equitably and transparently.

Finally, I’ll discuss how the Department will encourage companies to shape financial compensation around promoting compliance and avoiding improperly risky behavior.

Continue Reading

Editor's Observations of DOJ Cases in 2022
Department Of Justice & The Federal Courts
The hardest part of reviewing the DOJ daily press releases is seeing the extent and number of the child pornography publishers, distributors, and those involved in enticing minors. All of which receive usually the maximum sentence with a number getting life sentences, with no parole in the federal system. The numbers are alarming and is another sad consequence of the internet.

Secondly, and without any quantitative support, it certainly appears that the federal violent crime task forces established in high crime areas of the nation under the DOJ Project Safe Neighborhoods program are indeed resulting in increased apprehensions and convictions over 2021. All of which have to do with guns, ghost guns, and drugs. As those cases are increasing. Which also means increased prison populations at the federal level.

Only this year have we seen organized retail crime mentioned in the press releases, which is a significant sign. Just a thought - Gus Downing

"Labor Shortages Are Most Pronounced in Retail"
Over Worked - Understaffed & Short 5M Workers

Worker shortages are fueling America’s biggest labor crises
With more than 11 million job openings and only 6 million unemployed workers, employers have struggled for more than a year to hire enough people to fill their ranks. That mismatch has left employees frustrated and burnt out, and is fueling a new round of power struggles on the job.

Widespread labor shortages that have caused deteriorating working conditions. Staffing shortfalls in key industries, such as health care, hospitality and education, have put unprecedented pressure on millions of workers, igniting a wave of labor disputes as well as new efforts to organize nationwide.

The reasons are complex and broad. Early retirements, a massive slowdown in immigration that began during the Trump administration, as well as ongoing child care and elder care challenges combined with covid-related illnesses and deaths have all cut into the number of available workers.

“We have approximately 2.5 million fewer people in the labor force than we were on track to have with pre-pandemic trends. | Continue Reading

Americans Haven't Been This Pro-Union Since 1965
Workers are getting bolder - Strikes Tripled Over LY

More workers have gone on strike (78,000) in the first half of 2022 than in all of 2021 (26,500).

Inflation woes and increased bargaining power have created a perfect storm of conditions for workers, who have joined picket lines in increasing numbers since the pandemic began.

It comes as the National Labor Relations Board sees both an uptick in union representation petitions and unfair labor practice charges.

Post-vaccine 2021 into 2022 has marked an uptick in organizing and increasing pushback from workers on the previous status quo. That all came against the backdrop of companies raking in their highest corporate profits in over 70 years.

In general, Americans haven't been this pro-union in nearly 60 years, according to a recent Gallup poll. Workers at companies like Starbucks, Trader Joe's, and Amazon are seeing historic union wins.

And although the pandemic-era labor shortage is starting to shrink, there's still a way to go before worker supply is back to pre-crisis levels. businessinsider.com

Halloween Participation Returns to Pre-Pandemic Levels with Record Spending
Participation in Halloween-related activities will resume to pre-pandemic levels, with 69% of consumers planning to celebrate the holiday this year, up from 65% in 2021 and comparable to 68% in 2019, according to the National Retail Federation’s annual survey conducted by Prosper Insights & Analytics. With the spike in participation, total Halloween spending is expected to reach a record $10.6 billion, exceeding last year’s record of $10.1 billion. nrf.com

Comments sought on working draft of ISO face biometrics fairness testing standard

McDonald’s Begins to Reopen Restaurants in Ukraine This Week
 

Senior LP & AP Jobs Market

Dir. Risk Management job (including safety, loss control, asset protection and serves as chief risk advisor) posted for WKS Restaurant Group in Cypress, CA
Reports to Report internally to Vice President, People, Risk, and Legal Services. Bachelor’s Degree in Risk Management, Business Administration, Economics or a related field is required. A Master’s degree in Business Administration or Business Management is preferred. WKS Restaurant Group is comprised of 381 restaurants, 10,000 employees, with 5 iconic brands – Blaze Pizza, Denny’s, El Pollo Loco, Krispy Kreme, Wendy’s. The Director, Risk Management leads and manages the WKS Risk Management Program as well as other critical risk management functions, including safety, loss control, asset protection, claims, litigation, workers compensation, food safety, and insurance programs.  indeed.com