Dive Summary:

• REI changed its return policy in June to only accept products within a year of their purchase dates.
• The previous policy without a time limit was not unusual and resembled rules at Orvis, L.L. Bean and Patagonia, but REI faced a surge in returns, characterized by heavily-used items and online braggers who used cash from returns for rent and tuition.
• REI's position is that some customers were confused about the spirit of its return policy, but the company is still trying to figure out why it was hit with a problematic uptick in questionable returns.

Dive Insight:

Thus far, REI's competitors have not been driven to follow suit and alter their own return policies, so it's possible that answers to the company's questions my lie in its own customer demographics and attitudes. Online forums, wherever they may be represent places where customer cultures can evolve. If nothing else, this story may be a reason to double-check what kinds of practices and attitudes your own customer base exhibits online and think about potential consequences as you develop community engagement strategies.