How It Works In Case You Get Banned

For many shoppers, returning unwanted or defective items is a normal part of shopping. However, some are shocked to find that their return privileges have been revoked or put on “watch”. Across major retailers, companies are increasingly using sophisticated tracking systems to identify and blacklist customers they deem to be excessive or suspicious returners. Here’s how it all currently breaks down.

Why Do Stores Blacklist Some Returners?

Here are some common sense reasons why a store might flag a shopper:

Frequent Returns: Customers who return a high percentage of their purchases might be seen as abusing the system.

Returning Worn or Used Items: Known as “wardrobing,” this is when shoppers buy an item, use it, and then return it.

Returning Without a Receipt: Some stores track customers who repeatedly return items without proof of purchase.

Returning Stolen Items: Criminals attempt to return shoplifted goods for cash or store credit.

Suspicious Behavior: Some return bans result from algorithmic decisions based on shopping patterns that retailers consider risky.

PRO TIP: HOW TO AVOID GETTING BANNED

If you frequently return items, follow these tips to minimize the risk of being blacklisted:

Keep Your Receipts – Providing a receipt reduces the likelihood of being flagged.

Space Out Your Returns – Avoid making multiple returns in a short period.

Avoid Large or Frequent Returns – Returning multiple high-ticket items can trigger tracking systems.

Use Store Accounts or Loyalty Programs – Many stores offer more flexibility to loyal customers.

The Major Stores That’re Banning Some Returners Right Now

I’m trying to talk to someone from all of the stores mentioned below about getting banned or the threat of a ban.

I’ve talked to a few and included their stories below, but if you have personal experience with any of these stores, please contact me.

1. Target

Target monitors returns closely and has been known to ban customers who make frequent returns, especially without a receipt.

Customers who rely on Target’s return policy for non-receipt returns may eventually hit a limit.

Target’s Policy: Each non-receipted return is tracked and capped at $150 per year, per customer.

Common Reasons for a Ban: Frequent returns, excessive receipt-less returns, or high-value returns.

Tracking System Used: Target reportedly uses The Retail Equation (TRE) to analyze return data.

REAL LIFE EXAMPLE: TARGET GETTING STRICTER ON SOME RETURNS

I chatted with Tina from Stockton, CA, about her recent experience at a Target store.

She thought she had cracked the system with Target’s generous Cat & Jack return policy, which allows worn-out kids’ clothes to be returned within a year.

But after one too many trips to customer service with scuffed-up sneakers and worn leggings, she was politely warned that any future return of worn clothing were going to be denied.

The reality check made her rethink how often she was treating Target like a clothing rental service, and now she tries to pass down outgrown items instead of automatically returning them.

She said, “I thought I had an unlimited pass, but apparently, even Target has a limit—guess I’ll just donate their old clothing now.”

2. Walmart

Walmart has a decent return policy, but it also tracks customers to prevent return fraud.

In some cases, Walmart has banned shoppers from making any returns, even for defective items.

Common Reasons for a Ban: Frequent high-dollar returns, excessive non-receipt returns, or suspicious refund requests.

Tracking System Used: Walmart uses The Retail Equation (TRE) to track returns and flag unusual patterns.

Some customers report being banned after returning expensive electronics or multiple high-ticket items in a short period.

30% RETURNS COULD TRIGGER WALMART BAN

I talked with Theresa, a mom of 3 from Texas, who recently got her Walmart account banned for excessive returns.

Over the course of a couple years, she made around 250 online purchases and returned or canceled about 75 of those orders—sometimes because she changed her mind, other times because Walmart shipped her the wrong item.

One day, she logged into her Walmart account and was met with an unpleasant surprise: her account had been deactivated. Confused, she called customer service, only to be told that her high return rate violated Walmart’s return policy, and as a result, she was banned from making future returns. Even her Walmart+ membership had been revoked.

Frustrated, she tried to explain that many of her returns weren’t her fault—some items arrived broken, while others were out-of-stock substitutions she didn’t want. But Walmart stood firm. Her case was closed, and there was no way to appeal the decision.

3. Best Buy

Best Buy has a very strict 15-day policy for returns. Customers who frequently return items or cancel orders may find themselves restricted.

Common Reasons for a Ban: High-value returns, returning items missing accessories, or multiple returns within a short timeframe.

Tracking System Used: Best Buy has partnered with The Retail Equation (TRE) for return monitoring.

In some cases, customers have received emails or in-store notifications that they are no longer allowed to make returns at Best Buy.

REAL LIFE EXAMPLE: BEST BUY IS WATCHING YOU

I spoke with Eric from San Diego, CA about his recent “return experience” with Best Buy.

In recent years, he has leaned pretty heavily on Best Buy’s return policy for big tech purchases, especially when buying laptops for his college aged kids.

But after returning two laptops that didn’t meet expectations, a pair of headphones his son didn’t like, and a TV that was “too big for the wall” all within a few months, he was pulled aside at customer service.

A manager politely but firmly told him that his return activity was being monitored and that he could face restrictions if it continued.

“I wasn’t trying to abuse the system—I just have bad tech luck. But message received. I’ll think twice before ‘testing out’ another laptop,” he says.

4. Sephora

Sephora is another retailer that monitors return activity and may ban customers who return too often. Since makeup and beauty products are personal-use items, excessive returns raise red flags.

Common Reasons for a Ban: Returning used makeup, excessive online order returns, or frequent returns with no receipt.

Tracking System Used: Sephora uses internal data analytics alongside The Retail Equation (TRE).

Some customers have received notifications that they are no longer allowed to return items, even if they were legitimate purchases.

5. Home Depot

Home improvement stores like Home Depot also track returns, particularly on high-value items like tools, appliances, and electronics.

Common Reasons for a Ban: Frequent returns of high-dollar tools or items without receipts.

Tracking System Used: Home Depot reportedly uses The Retail Equation (TRE) and internal monitoring systems.

Customers making multiple high-value returns, even with receipts, have reported being flagged and banned from further returns.

REAL LIFE EXAMPLE: TREATED LIKE A SCAMMER

I spoke with DIYer Louis about his recent experience with The Home Depot.

After returning a few extra light fixtures, the wrong shade of paint, and a power drill he never ended up using, he was shocked when the cashier told him he couldn’t return anything else for 3 months—because he’d been flagged.

Even with receipts in hand, he felt he was treated like a problem customer and told his returns were “excessive.”

“I wasn’t flipping tools for profit—I just made some mistakes. But apparently, Home Depot has decided I’m a return criminal,” he says.

6. Lowe’s

Lowe’s has a return-tracking system that monitors high-value returns and customers who frequently return items without receipts.

Common Reasons for a Ban: Frequent no-receipt returns, abuse of the return policy, or suspected fraud.

Tracking System Used: The Retail Equation (TRE).

7. CVS and Walgreens

Pharmacy chains like CVS and Walgreens also track returns. Due to health and safety concerns, they have strict policies for returns, particularly on prescription medications, beauty products, and opened items.

Common Reasons for a Ban: Returning opened beauty or health products, excessive return frequency, or refund abuse.

Tracking System Used: Internal tracking combined with The Retail Equation (TRE).

Some shoppers have been banned after multiple returns of personal care items, even when unopened.

8. Amazon

Amazon, while known for its customer-friendly policies, has also been reported to ban accounts that make too many returns.

Common Reasons for a Ban: Excessive returns, returning high-value items frequently, or abuse of free returns.

Tracking System Used: Amazon uses internal analytics to track return behavior.

Customers who return a large percentage of their purchases have had their accounts flagged, restricted, or even permanently banned.

REAL LIFE EXAMPLE: BUSY MOM GETS THE DREADED EMAIL FROM AMAZON

I talked with Melissa, a busy mom from Austin, TX, who received an unexpected email from Amazon warning her about too many returns and the risk of account limitations.

The email said, “We’ve noticed an unusually high number of returns on your account. Please review our return policies to avoid potential account limitations.”

She hadn’t realized her frequent returns—mostly kids’ shoes, bad-fitting clothes, and impulse buys—were being tracked, though she did admit to returning about 25% off the stuff she bought.

The warning made her rethink her shopping habits, leading her to double-check sizes, read reviews carefully, and resist impulse purchases.

“Amazon basically told me, hey, cool it with the returns, or we might have to break up,” she says.

9. Apple

Apple has a strict return policy for devices and accessories, and excessive returns may result in account restrictions.

Common Reasons for a Ban: Returning multiple Apple products within a short time, abuse of return periods, or returning used devices.

Tracking System Used: Internal tracking through Apple IDs and purchase history.

Some customers have reported being blocked from making future purchases after too many returns.

REAL LIFE EXAMPLE: APPLE IS BUCKLING DOWN

I talked with a Olivia, a college student from Georgia about her run-in with the return policy at Apple.

After exchanging an iPhone for a different color, returning an iPad she never used, and swapping AirPods that didn’t fit well—all within a 6 months—she got an unexpected warning.

A store employee pulled her aside and told her that Apple “closely monitors return patterns” and that she might be restricted from future returns.

“I wasn’t running a black-market Apple resale business—I just changed my mind a few times. But I guess Apple expects you to commit, no take-backs,” she says.

10. Nike

Nike has a policy that allows for returns within 60 days, but excessive returners have reported being banned from future returns.

Common Reasons for a Ban: Multiple returns in a short period, frequent exchanges, or suspected abuse of return policies.

Tracking System Used: Internal analytics and customer purchase tracking.

11. Victoria’s Secret

Victoria’s Secret tracks returns and may ban shoppers who frequently return lingerie, bras, or swimwear.

Common Reasons for a Ban: Returning high volumes of worn or unworn merchandise.

Tracking System Used: Internal data monitoring and The Retail Equation (TRE).

12. REI

REI is known for its generous return policy, but the company has also started banning customers who it believes abuse returns. The screenshot above is the exact email they’re sending those they feel have abused their policy.

Previously, REI had a legendary “no questions asked” return policy, but due to excessive abuse, they recently changed their policy and now track returns closely.

Common Reasons for a Ban: Excessive returns of used outdoor gear or clothing.

Tracking System Used: REI uses internal tracking systems and customer account purchase history.

Some REI shoppers have reported having their membership revoked after returning too many items, particularly expensive outdoor gear like hiking boots, tents, or bikes.

If REI believes you are using their return policy as a “rental program” (buying items, using them for a trip, and then returning them), they may permanently ban you from making future returns or even shopping at REI.

WHAT’S THE TIPPING POINT FOR REI?

I was recently included in a news story talking about REI returns. The gal that was the focal point of the story had been banned from making any more REI returns.

To give you an idea, since 2014 she spent about $11,000 on REI gear and had returned about $3,100 of that.

So after doing a little math, if you’re buying frequently from REI, and returning about 25%-30% of the stuff you buy, there’s a good chance you’re going to be getting the same “banned” email.

The Retail Equation (TRE): The Software Behind Return Blacklists

One of the most “controversial” return-tracking tools used by major retailers is The Retail Equation (TRE).

This software analyzes return patterns and assigns a risk score to each customer.

If a shopper’s return activity exceeds an unspecified threshold, they may be banned from returning items altogether.

How TRE Works:

Data Collection: TRE collects data from participating retailers every time a customer makes a return where they have to show their ID. This happens most often when making returns without a receipt or when you’re beyond the stores return window, which means you’re returning for store credit.

Pattern Recognition: It evaluates how often someone returns items, the value of the items, and whether a receipt was provided.

Scoring System: If a customer’s return behavior is flagged as excessive or suspicious, TRE may alert the retailer, leading to a temporary or permanent return ban.

TRE operates in secrecy, meaning consumers are often unaware that their returns are being tracked until they are banned.

PRO TIP: HAVE YOU BEEN WRONGLY BANNED?

Even customers who genuinely follow store policies can be blacklisted if their return habits trigger TRE software.

You have the right to request a copy of your return history from TRE to see what triggered the ban.

How to Request Your Report:

• Visit The Retail Equation’s website.
• Look for the Return Activity Report Request form and pick Online, Phone, or Email.
• Submit your request and review your history.

Ask the Reader: Have you wrongly been banned from making returns? What was the store and what was the final outcome? Let me know as I’m trying to get an account from shoppers for all the stores included in this article.

By Kyle James