Recently I saw Sharon, or one of the hosts, presenting clothing clearance items and she really emphasized that every clearance item -- regardless of the line -- is brand new. Nothing is ever picked over like, you find in regular department store clearances. They simply need to make room in their warehouse. Yeah, right. Obviously, totally fabricated baloney.
It seems only honest as well as ethical that once something is returned -- especially clothing -- that it should be resold "AS IS."