This is my second bad experience with Kmart in the past 18 months regarding video game hardware (two separate locations).
About a year ago I bought a clearance PSP-3000 from a Kmart (not my regular location) for $79.99 (I think that was the price). One of the seals was broken but the other two were in tact and the employee assured me that it has been out back for a year plus and had never been bought or returned. However when I got home and opened it not only was the console used, it was obviously broken (damaged/cracked screen) but the S/N didn't even match what was on the box. To make it worse when I went to return it the manager on duty talked to me as if I was the one trying to scam his store. After about fifteen minutes of explaining the situation to him, he finally allowed me to exchange it for another unit which was new (confirmed in store).
Today at my local Kmart I picked up a Pink 3DS XL for a relative because I had a 20% back in points coupon and currently these coupons still work on hardware. The Pink 3DS XL wasn't at this location a few days ago when I was looking for something else (their inventory levels are pretty pathetic) but I figured they must have just gotten a unit reallocated to there store. When the employee took it out of the cabinet and brought it the register I noticed that something didn't look right with the seals; it looked like there was dirt or something behind them as if someone had removed them and put them back. I ask if I could purchase the unit at Customer Service so that i could carefully open it and verify that the unit was indeed the correct one and wasn't another damaged or broken unit.
So I carefully opened it and just verified that the S/N matched and went on with the purchase. The cashier at Customer Service said that someone had bought it and then had buyers remorse the same day and taken it back. She said she was the one who had originally opened it and accepted the return and that the original buyer hadn't used it. I will admit that I was in a rush so I just bought it and figured good enough. When I got home I decided to take another look and even though the S/N on the console matched what was on the box it had game saves and showed obvious signs of use including dirt and grime on the back and joystick (in the store I just looked at the S/N and never opened the clamshell).
I'll take 100% of the responsibility for not just walking away from the purchase (I should have) but the point to this rant is I don't understand how any retailer can take a return on an electronics item in which it has been opened or even possibly been opened and used and then resell it as brand new. At the very least shouldn't they be stickering this as "opened box"? Or "repackaged?"