Returns and refunds are an expensive, time-consuming, but necessary evil that requires a well-defined, easily understood, and strictly enforced return and refund program. Style information management systems (SIMS) permit retailers to record ordered merchandise as it is received and provide a mechanism for distinguishing between honest and dishonest customers. For instance, if a returner without a receipt has an item and the SIMS reveals that item should still be on the selling floor, the customer and the reason for return are suspect. SIMS can reduce losses by helping clerks refrain from accepting returns just to satisfy the customer. An important loss prevention function requires maintaining a file on suspect or frequent returners. Such individuals cause losses both when the return is fraudulent and involves stolen goods or even when it is legitimate because of the expense of servicing accounts of people who make purchases just to return them. In addition to aiding in the identification of fraudulent and frequent returners, recordkeeping can help identify collusion between store employees and certain customers. While return and refund policies should be clearly defined and receipts should be required, reasonableness in enforcement is needed to promote goodwill. Refund and return policies should be advertised openly on the sales floor to lend credibility to the policy and enhance customers' understanding of it. Such a policy may deal with the time limit for returns or refunds, the condition of items accepted as returns, and other requirements such as addresses, identification, or customer photographing.