Kids' Clothing Retailer Changes Return Policy That Targeted Lakewood: State AG

TRENTON – An online children's clothing retailer has agreed to drop its policy of not offering refunds for orders originating in Lakewood, the state attorney general's office said Thursday.

Shan and Toad, which appears to be based in Riverside, California, based on its contact telephone number, agreed to drop its policy of only offering store credit or merchandise exchange to shoppers from Lakewood and Passaic, two communities that contain large populations of Orthodox Jews, Attorney General Christopher S. Porrino announced.

Its return policy previously provided refunds; its new policy provides only for store credit, and returns must be authorized by email from the company. "Items must be in brand new condition, with original tags attached. After receiving a return number, you may ship the items back to us, shipping costs on your behalf. A $5 restocking fee and the cost of shipping will be deducted from the credit amount. The return must be sent back within 7 days of receipt. We are not responsible for any returns that are lost or damaged in delivery. If we identify an unreasonable return pattern, we may restrict or refuse future transactions and returns from such customers at shanandtoad.com."

Porrino said Shan and Toad agreed to drop its exclusion of Lakewood and Passaic buyers from refund eligibility after two agencies within the Attorney General’s Office – the Division on Civil Rights and the Division of Consumer Affairs – contacted the retailer to advise that it appeared to be in violation of state anti-discrimination and consumer protection laws.

Under the settlement, Shan and Toad has permanently eliminated the old policy of not offering refunds to buyers from Lakewood and Passaic, and agreed to develop and publicize a revised return policy.

The new policy, according to an Assurance of Voluntary Compliance (AVC) agreement signed recently by the company, must avoid any imposition of “more restrictive conditions” on certain customers because of where they live if it has the “effect of discriminating based on any protected class … such as religion.”

“This settlement sends a clear message to online and mail-order sellers that red-lining – i.e., treating customers from certain areas less favorably based simply on their address — is not acceptable in New Jersey when it has the effect of discriminating against people based on their faith or any other protected category,” Porrino said.

As part of the agreement announced today, the state has imposed a $10,000 suspended penalty against Shan and Toad. The suspended penalty will be vacated within a year unless Shan and Toad is found to have violated the settlement terms during that time, he said.

Under the settlement, Shan and Toad makes no admission of wrongdoing.

Division on Civil Rights Investigator Elise Olgin and Division of Consumer Affairs Chief Investigator Laurie Goodman handled the Shan and Toad matter on behalf of the State.

Woman shopping onine, RoyalSiamBeauty, via Flickr under Creative Commons license