New LegalShield Study: Americans Forgo Returns on Broken, Unwanted Products, Citing Barriers from Retailers

• Shoppers abandon planned returns when retailer friction outweighs the refund value
• Consumers frequently keep defective items rather than navigate difficult return processes
• Most would utilize affordable access to a lawyer to dispute a denied return

ADA, Okla.–(BUSINESS WIRE)–American consumers are letting defective or unwanted purchases pile up in their closets rather than return them, with nearly half saying they’ve kept items in the past year because the process was too cumbersome.

The behavior, which peaks during the January return season, means shoppers are forfeiting refunds they’re entitled to while retailers retain revenue from broken merchandise and buyer’s remorse. Some 46% of consumers abandoned returns because they found the process too difficult or expensive, according to a December survey of more than 1,000 shoppers by LegalShield.

“At the start of a new year, every dollar counts and returning defective or unwanted gifts is a great way to recover some of the year-end splurge,” said Warren Schlichting, CEO of LegalShield. “Confusing policies and processes shouldn’t be a barrier to consumers getting their money back or exercising their legal rights.”

The Return Barrier: Why Money is Left on the Table

The survey highlights a major gap between consumer intent and action due to “return friction” and policy misconceptions. These consumer frustrations are part of a growing national trend; according to the most recent National Customer Rage Survey, 77% of U.S. consumers reported experiencing a product or service problem in the past 12 months.

• Intent vs. Reality: Although 43% plan to make returns, 46% of respondents admit they have kept defective or unwanted items in the past year simply because the return process was too difficult or expensive.
• The Hassle Factor: Faced with a consumer issue, 29% of shoppers choose to “do nothing” because they feel the resolution isn’t worth the hassle.
• Primary Complaints: For those who did attempt returns, 15% were hit with unexpected restocking or shipping fees, and 13% had a return refused due to “Final Sale” terms or missing receipts.

Literacy Gap: Consumer Rights vs. Store Policies

Many Americans are unknowingly surrendering their legal rights due to simply not knowing them.

• The “No Returns” Misconception: Only 31% of consumers correctly understand that a “No Returns” sign may not legally override their right to a refund, repair, or replacement if an item is defective or unsafe.
• The “Final Sale” Trap: Roughly 25% mistakenly believe their legal rights depend entirely on a store’s internal policy, rather than consumer protection laws.
• Unfair Fees: 47% of consumers believe it is never fair to be charged restocking or shipping fees if the item received was damaged, defective, or not as described.

“The most common myth is that ‘final sale’ means they have no recourse,” said Rebecca A. Carter, a LegalShield provider lawyer with Friedman, Framme & Thrush, PA. “Retailers count on consumers not knowing their rights. Proper legal guidance can cut through the noise of a store policy to enforce the consumer protection laws that actually keep your money in your pocket.”

Closing the Gap Through Legal Advocacy

While only 8% of consumers currently contact a lawyer to resolve consumer issues, data suggests there is an appetite for affordable assistance.

• Affordable Access: 74% of respondents say they would be likely to have a lawyer review a denied warranty or refused return if they had affordable access through a subscription service.
• A “Legal Check-Up”: Experts encourage consumers to start the New Year with a legal review of their holiday purchases to ensure they aren’t leaving money on the table due to stolen or list packages, defective products, or unfair fees.

The LegalShield Holiday Spending Survey was conducted the last week of December 2025 among 1,013 U.S. adults, ages 18–80, using a sample balanced to U.S. Census demographics.

About LegalShield

For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world’s largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield and its privacy management product IDShield equip individuals, families, businesses, and employers with the tools they need to affordably live a just and secure life. Through technology and innovation, LegalShield is transforming how people access legal guidance, with hundreds of qualified attorneys and law firms across the country. To learn more, visit LegalShield.com and IDShield.com.

Contacts

Media Contact:
Taylor Smith, PR Director

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