Hidden rules under Costco’s loose return policy: Returns of more than 50% of purchases will be marked

Costco is known for its extremely liberal return policy. (AFP)

[Financial Channel/Comprehensive Report] Costco provides a loose return policy, which also allows consumers to return goods for hundreds of reasons. Whether the clothes do not fit or the snacks taste terrible, Costco will accept the goods and refund them to consumers. But what few people know is that Costco will actually treat those who abuse the loose return policy. Although it is not yet known what percentage of returns will result in members being prohibited from returning goods, a Costco employee said that if members return at least 50% of the purchased goods, they will be flagged, and those members who appear to only use the goods temporarily and then return them after heavy use will also be flagged.

Costco promises a "100% Satisfaction Guarantee" on most items, which means consumers can usually return items months, and sometimes even years, after purchase. However, the actual return situation may be slightly more complicated than what members see on the Costco website. Costco consumers and employees have revealed over the years many unofficial special rules, hidden exceptions and ambiguities that many members don’t fully understand until they stand in front of a returns counter.

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Most Costco products have no return period, and members can return them as long as they are not satisfied with the products. Discussions on the Internet are full of news about consumers returning old vacuum cleaners, faulty ovens, and mattresses that have been used for a period of time. However, it is worth noting that every Costco purchase is directly linked to the member account. This means that Costco can see what members bought and when they bought it? There’s also the frequency of returns, or whether there’s a suspicious pattern of returns, and whether high-priced items are returned frequently.

Costco can cancel memberships for excessive return policy abuse. Accounts from multiple former employees and long-time customers suggest that habitual "frequent returners" may eventually be flagged in internal systems.

Members who return at least 50% of their purchases will be flagged, one employee said, as will members who appear to be using the items temporarily and then returning them after extensive use. Examples of common employee complaints include returning patio furniture after the summer, returning a dead Christmas tree after Christmas, returning a large TV the day after the Super Bowl, or returning a mattress after years because it has become "uncomfortable."

Although Costco's return system is standardized across all stores, many returns ultimately depend on the discretion of the store supervisor, local store culture, and whether employees believe the consumer's behavior is reasonable. Online forums are filled with various returns experiences, and the results vary greatly depending on the store and the circumstances.

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