For large, complex products this approach is sensible because complex products need constant adjustments. I ran into this recently with a mail-server product called Imail, from Ipswitch. A few months ago Ipswitch announced a new annual maintenance contract. Requiring defective products be returned before sending a replacement. In reality, it's an unnecessary waste of time.
Vendors can ask for serial numbers to verify real products.
They can take the customer's VISA number, to be used in lieu of receiving the defective product. They can afford to take the risk for the sake of good service. When a product must be returned first, the customer is forced to wait. If a customer buys a product, he expects to use it now . The vendor should make every effort to get the replacement product into the customer's hands immediately.