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Consumer Reports' retailer naughty and nice list

Walmart advertisements at Walmart in San Jose, Calif., Wednesday, Aug. 13, 2008. (AP Photo/Paul Sakuma)
Walmart advertisements at Walmart in San Jose, Calif., Wednesday, Aug. 13, 2008. (AP Photo/Paul Sakuma) ASSOCIATED PRESS

Just in time for the holidays, Consumer Reports has released a list of 10 companies that it thinks have been naughty to shoppers, and 10 that have been deemed nice.

The "Naughty and Nice Holiday List" is based on input from Consumer Reports' reporters and editors who cover such areas as shopping, travel, hospitality and telecommunications. Consumer Reports notes that the list is based on specific policies and doesn't reflect the company as a whole.

The naughty

The 10 companies called out for naughty policies, in no particular order, are:

Verizon Wireless: Doubled to $350 the early termination fee imposed on consumers who cancel their smartphone contracts after the 30-day grace period. Verizon kept the penalty at $175 for consumers with conventional cell phones.

Macy's: The Cincinnati-based department store chain calculates its freight charges on the dollar amount of the order, not the size and weight of the package. The base fee is $5.95 for orders less than $25, to as much as $23.95 for those $300 or more. And that's standard delivery. Lexington has a Macy's store at Fayette Mall.

CompUSA: For imposing restocking fees of "up to 25 percent" of the purchase price on any product the retailer decides doesn't meet its return criteria. And it doesn't spell out which products are subject to such a fee. There are no CompUSA stores in Kentucky.

Buy.com: No returns for TV sets 27 inches or larger. If you fail to inspect the set upon delivery and sign the shipper's release, Buy.com says it's your problem and that you must deal with the manufacturer. Its Web site also lacks a phone number, Consumer Reports says.

Best Buy: Offers only a 14-day grace period to return computers, monitors, camcorders and digital cameras. There are two Best Buy stores in Lexington: on Nicholasville Road and in Hamburg.

Spirit Airlines: The carrier, which pioneered "ancillary" fees among domestic airlines, charges for carry-on bags: $30 in advance, $45 at the gate. Spirit does not fly into any Kentucky airports.

Dollar car rental: Dollar demands that customers present a receipt to prove they filled up the tank within 10 miles of the drop-off location or face a fee to top off the tank and the labor required to do so. Dollar has a location at Louisville International Airport.

SanDisk: It's a big fan of issuing rebates in the form of gift cards, which have no cash value and must be redeemed for merchandise.

United Airlines: United offers customers a low-price guarantee. Find a lower fare on the company's Web site for the same itinerary you booked, and not only will United give you the lower fare, but also a voucher good for 20 percent off your next purchase. Unless you have a non-refundable ticket — the type most people buy — and find a cheaper flight, United imposes a $150 "administrative" fee to make the change. United serves Lexington's Blue Grass Airport.

DirecTV: The California-based satellite TV firm, which has more than 18.7 million subscribers, has a policy that extends a customer's contract for an additional 24 months if new equipment is added. If you want to cancel your service, the penalty is an early termination fee.

The nice

And here are the 10 who landed on the nice list:

Southwest Airlines: Two pieces of checked luggage, no charge. And that includes bulky stuff such as golf clubs and skis. Southwest serves the Louisville airport.

L.L. Bean: The catalog retailer offers a 100 percent product satisfaction guarantee. Return anything at any time for any reason.

Zappos.com: Free shipping and free returns, including prepaid return label. Zappos has a fulfillment center in Shepherdsville.

Costco: Open-ended return policy for virtually everything the warehouse retailer sells minus some home electronics, which still come with a 90-day return period. Costco has stores in Louisville and Cincinnati.

U.S. Cellular: While the FCC proposes that cell carriers alert consumers about to exceed their plans' monthly allotment of minutes, which could lead to significant overage charges, U.S. Cellular is already giving its customers a heads-up. U.S. Cellular has no stores in Kentucky.

Orvis: Shoppers can call a toll-free number and speak to a human being. It also offers live Web chat with support staff, e-mail queries and a guaranteed response time of two hours or less.

Hotels.com: The travel Web site never charges a fee to cancel or change a room booking. But consumers still should check the hotel's reservation policy to avoid any penalty imposed by the chain.

J&R: The New York electronics superstore and e-retailer has a price-match policy with few caveats and fine-print exclusions: Find it at a lower price at an authorized seller (the exception being a warehouse membership club), and "we will do everything possible to meet or beat that price" via a special telephone hot line. J&R also gives customers 30 days to ask for a price adjustment on existing orders if they find a lower price.

Wal-Mart: No receipt, no problem. Customers may return most items to a Wal-Mart store for a cash refund (for purchases less than $25), a gift card (for purchases more than $25) or even exchange. There's one catch: More than three such returns within 45 days requires a manager's approval. Wal-Mart has several locations in Central Kentucky.

Publix: If you need an antibiotic, the Florida-based supermarket chain will have its pharmacies dispense up to a 14-day supply for some of the most common generic ones, for free. All you need is a proper prescription. There are no Publix stores in Kentucky.

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