Retelling is when one attempts to recall events for other listeners, possibly exaggerating certain points of the story or creating falsehoods either consciously or accidentally. It often occurs when witnesses to a crime are asked to recall what/who they saw. Sometimes the witness may recall that the criminal was wearing a black suit and tie, when in reality he was wearing a black t-shirt. This can be very misleading in court cases especially if there is a lack of physical evidence.
My example of retelling is found in the movie Sasquatch Gang. This clip shows one of the main characters, Hobie, retelling the events of the week to his diary.
Although you may not realize how much Hobie exaggerated the events he described because I could not find a clip that showed the actual events, he is retelling how events played out in his mind. In real life, his friends did not refer to his weight or say “fat people suck,” but it appears that he is very sensitive about his weight because that is what he remembers them saying. Therefore, Hobie records what he remembers from the events in his diary, even though they are inaccurate.