A Burberry brand store in a department store was caught selling a used product as if it was new. A customer bought a handbag worth about 2 million won (U$1,600) as a gift and presented it to her relative, but a few days later, she received an embarrassing call from her relative. Inside the handbag was a warranty card with a record of a stranger’s purchase. It was clear that the product had been bought and returned two months ago and was not new. The customer contacted the store to file a complaint. This incident has left many customers feeling angry and betrayed by the luxury brand. The store issued a refund for a handbag that was returned, explaining that there was no problem with the quality. They said it was a mistake not to remove the warranty and issued the refund in one day.
The store sold the returned product without notifying the customer. She also found the handbag was not in complete condition. There was also no protective plastic cover to prevent product damage. Experts point out that luxury brands should notify customers in advance if there is a history of refunds or returns as they have a policy on the high quality. In the case of returned or exchanged products, it is appropriate to sell them through other channels at a lower price than the market price. Selling used products without informing is an act of deceiving consumers.
The local shop has stated that there is no requirement to notify customers of returned merchandise, and that even if products which have been refunded multiple times are deemed to be in like-new condition as a result of self-inspection, they can still be sold without notifying the customer.