Is Costco’s Generous Return Policy at Risk? Rising Concerns Over Policy Abuse

Costco is renowned for its lenient return policy, which has seen customers return items ranging from used toilets to partially eaten pies.

The members-only retail giant, with over 900 locations worldwide, promotes a “Risk-Free 100 Percent Satisfaction Guarantee” on its website.

As per this policy, Costco does not set a specific timeframe for most refunds and doesn’t require customers to provide a receipt for returns.

Throughout the years, customers have made use of this policy in both conventional and unusual ways.

In 2024, Costco’s return policy captured significant attention when a video went viral showing a woman returning a two-and-a-half-year-old couch to the store without a receipt.

Online, Costco employees have revealed some of the stranger things they’ve witnessed, including a woman returning a book because she didn’t like the ending and a mattress that was brought back after seven years of use.

In an online thread, one former worker said: ‘As a Costco employee, I’ve seen someone return a used toilet.’

‘I worked at Costco – someone brought back a plant they killed months later,’ another wrote.

Shopper Jackie Nguyen was left stunned after the store allowed her to return a couch two years after she purchased it

Another former employee revealed: ‘We took back a sectional sofa with bed bugs. And a pile of scrap wood claimed to be a playground set.’

But according to mounting evidence on social media, the warehouse giant may be becoming stricter about its returns process.

A report on Cleveland.com claims that ‘many members are now finding that the company’s famous no-hassle policy is changing.’

It adds: ‘Some customers have been surprised when a return was denied or when they were told they needed more details or receipts.

‘Electronics, jewelry, and other high-value products now have clearer time limits and documentation rules.

‘These steps are meant to cut down on returns that cost the company money.’

Some commenters expressed dismay over the reported rule changes.

On Reddit, one shopper said: ‘I blame the people returning Christmas trees after the New Year.’

Another quipped: ‘We can’t have nice things when people abuse the system.’

Nguyen filmed herself loading the grey L-shaped couch and chaise on to a trailer, admitting she was a little nervous about the sizeable return

According to its policy, Costco does not specify an expiration date on the majority of refunds, nor does it require customers to bring a receipt

However, many loyal Costco fans have said the story is untrue and that they have had no problems with recent returns.

‘This is clickbait. Nothing has changed,’ one Redditor wrote.

Another added: ‘Honestly, I think the author was wrong.’

The Daily Mail could not find any changes to Costco’s return policy online or any other evidence supporting the claims. 

It has contacted Costco and is awaiting comment.

Some products are exempt from the standard returns policy, including electronics, diamonds, cigarettes and alcohol, airline and live performance tickets, gift cards, and its famous gold bars.

Custom-installed programs and products with ‘limited use,’ such as batteries and tires, also do not qualify for the usual refund rules.

The members-only warehouse giant boasts more than 900 locations globally

While it leads to losses, Costco’s generous, nearly unlimited return policy is a major driver of customer loyalty and membership renewals

For electronics, customers have 90 days to make a return, although certain items – such as vacuums – still qualify for the unlimited guarantee.

There are also stricter rules around the return of diamonds larger than 1.00 carat.

Cigarettes, alcohol, hearing aids, and contact lenses are not eligible for return.

While it leads to losses, Costco’s generous, nearly unlimited return policy is a major driver of customer loyalty and membership renewals. 

The company considers the ‘loss’ a marketing expense rather than a direct hit to profits. 

Its membership fees are a primary driver of profitability, with annual costs starting at $65.