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Retailers, depending on their agreement with the manufacturers, are supposed to either return to vendor (RTV) or destroy in field any returned products since they are usually charging the vendor back for all returned items. If they fail to do either and allow the product to enter the "grey" market, the product is essentially "stolen" since the vendor already repaid the retailer for it under the terms of the purchasing agreement and it was supposed to no longer exist. The manufacturer, in turn, gets screwed because they are essentially expected by later customers to honor warranties for an item that isn't even supposed to exist anymore and any later "quality" issues get blamed on the manufacturer.
Constant problem....
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