Costco’s New Return Policy - Not As Incredible
You knew it was going to happen, especially if you read about some of the abuses committed by commenters in my post about how incredible the former Costco return policy was. Well, Costco this week announced (Consumerist broke it, at least to me) that they were going to be adjusting the policy to a 90-day electronics returns policy on D24 categories (their categories) televisions, computers, cameras, camcorders, iPod/MP3 players, and cellular phones. This only applies to purchases made after the roll out date (explained below).
Concierge & Warranty Extension
One cool thing out of this is that I didn’t know was that Costco extends a manufacturer’s warranty on televisions and computers to 2 years from date of purchase and that they offer free technical support on their Costco Concierge Technical Support line available at 1-866-861-0450.
Roll Out Date
The policy is being rolled out starting 2/26 and ending 4/2 so if you make a purchase before the official roll out date you are grandfathered into the existing return policy. The dates are:
- California - 2/26/07
- Remaining West Coast incl. NW, LA, SD - 3/12/07
- MW and TX - 3/19/07
- NE - 3/26/07
- SE and PR - 4/2/07
I assume that NW means Northwest, MW is Midwest, NE is New England, SE is Southeast, and PR is Puerto Rico.
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There are 25 comments, add your thoughts now!
This stinks. This is what happens when people abuse a amazing policy.
they only extended the warranty on computers and televisions? what about all the other consumer electronics, i.e. cameras, etc? oh well. it was bound to happen. i’m amazed they held that policy for so long.
I’m glad they changed the policy since it was being abused. Sorry to see that too many people abused the system though. However, 90 days return policy on electronics is still way more generous than other stores. Plus it doesn’t restrict returns based on whether it was opened or not, and nothing on restocking fees. So, although it’s regrettable, it still is a good deal.
If Costco is changing their return policy, I hope that this doesn’t mean REI will change theirs as well. I just returned some bike rack mounts I had bought 1 1/2 years ago. No questions asked. Granted everything was unused and still in the box but a year and a half is a long time. Lets hope REI doesn’t follow.
This policy is a big smoke screen, and it’s NOT because of scammers, but because Costco sells 3rd-tier electronics with high defect rates, and doesn’t want to eat the returns. Sell crap, and you’ll get a ton of it back.
Before, it was a trade-off I could live with. Take a chance on a grey-market Vizio/Sceptre/etc. HDTV because I knew if it blew up 6 months down the line, Costco stood behind their products and would replace it or refund my money. Why else would anyone buy a brand like Vizio??
But now, Costco wants to continue to sell high-defect crap like Vizio, yet wash their hands after 90-days, whereby you’re forced to call Vizio support in Peru, and arrange your 42″ LCD be shipped (at your expense) and then wait 3-6 months for it to be returned. And sure, Costco gives you an extra year of useless warranty on your Vizio LCD (LOL), which amounts to about 2 dead flies.
You’d have to be crazy to accept that kind of deal, and I can’t see myself spending another cent on electronics at Costco. Back to Best Buy and brand name electronics for me.
Well Vince, you really show your ignorance.
Please check your information before posting.
Vizio is a top rated value as is Costco.
I and my friends have owned the Vizio 50″ for almost 2 years and it’s an awesome value.
I’m going to buy the 60″ Vizio also.
I agree with Vince on this topic. Vizio is an exception rather than the rule. Cosco has introduced a number of contract manufacturers products. Unlike Vizio, many of these contract manufacturers, often Chinese companies, had lots of problems. An example is the 37″ Sceptre. LCD HDTV. These companies would never have been accepted and grown so quickly if it wasn’t for Cosco and that includes Vizio. Who would have bought the first Vizio tv’s if Cosco wasn’t standing behind them. I have a 42″ Sceptre LCD HDTV (no problems) that I absolutely would not have purchased if not for the Cosco warranty. Since I shop very little, I viewed Cosco’s membership fee as an extended warranty. I, like Vince, will purchase name brand electronics along with an extended warranty and will most likely let my Cosco membership expire.
Not mentioned anywhere is that this “liberal” return policy they had has one key catch. Today I returned a camera I bought 4 months ago (grandfathered in so the 90-day thing didn’t apply). The camera was defective. A piece fell off of it. Luckily, I had saved the box, accompanying software, manuals, etc. However, I was missing the a/v cable. They refused the return — refusing to accept a clearly defective $260 camera because a $5 cable wasn’t in the damn box! They actually suggested I go BUY one at Radio Shack!!! (Luckily, my wife knew where it was, so it only took 2 trips to get my refund)
So, if you’re one of those people who discard the cables they don’t need when they buy electronics (or use a universal remote and lose track of the original) you will be S.O.L. if you need to return it at Costco.
I actually work for Costco in Bridgewater, NJ and I have to say that we all saw this policy change coming, we’ve been saying it for years that it has to change. The problem with this policy is that, while it is used for it’s intent of standing behind merchandise by some, it is also highy abused by many others. In my store, I’ve worked in the refunds department, so I’ve seen this first hand. We have one particular member (We all know him by name, but I won’t post it here out of courtsey) who will buy TVs, cameras, Ipods, etc and return them every time a new model comes out. Now, aside from use, theres nothing wrong with the items he returns, he just wants newer models. He’s not the only one to do this, there are more. Just this past summer, we accepted a refund on a laptop from a different member. The laptop was 4 days shy of 6 months old (the limit on laptop refunds). When we looked further into this account, it turns out that, in the span of 2 years, this particular member purchased 13 laptops and desktops and returned all but 2 of them. This is clear abuse of a generous policy. We see similar returns seasonally. In the summer, we have an influx of shovels and snow throwers returned. In the winter/fall, we get back patio furniture, grills, lawn mowers, etc. We also get a mad rush of Post-Super Bowl TV refunds. People use our policy as a way to “rent” items, not as a promise to stand behind faulty merchandise. Its a shame that some people feel no guilt in doing this. Not only do they ruin the policy for others, but in doing so, they are also driving up costs of all other merchandise.
Oh, and as for Dr. Shrinker being upset that they wouldn’t take back your camera w/o all the parts, think of it this way: Would you buy the camera from us if we told you it didn’t have all the parts? No, so why should we buy it back from you w/o all the parts? Is it really asking too much for you to refund EXACTLY what you bought? I mean, after all, we are going to allow you to refund a defective camera 4 months after you bought it. Try that at BestBuy and see how hard they laugh at you.
To a costco employee:
I think your reply is just company hogwash, just like the bogus “Costco Stops Scammers” headlines that your PR department hatched.
If you truly wanted to get rid of scammers, then GET RID OF THEM. Cancel the memberships of abusers, institute a cap on returned $$$, limit returns to 1 year, etc. Change the policy in a manner that ACTUALLY curbs abuse.
But Costco is doing NONE of those things, and the “3 month return” policy change is simply protecting the company, using an anti-consumer stance concerning their high-defect electronics.
It has absolutely nothing to do with scammers. Seriously, how is this 3-month return/replacement policy going to stop scammers who buy a TV for Super Bowl weekend, then return it DAYS later?
Huh?
29 May 2007 I purchased at Costco # 323 Edison, NJ Sony W90 for amount of $274.99 (before tax).
This brand new digital camera with 10.1 Mega pixel didn’t produce quality pictures and during my business trip in Naperville, IL one of my colleague showed me the same camera that produces high quality pictures. I understood, that camera I bought at Costco has some defects and wanted to return it.
However, when I approached Costco store in Naperville on June 29, 2007, Costco representative called Donnie Hittle, told me that he will not accept camera back and that I abuse his company. This representative even wanted to cancel my membership.
Cosco refund policy states in one equivalent way that customer gets full refund within 90 days from the day of purchase, however Costco store in Naperville, IL doesn’t respect this policy.
Costco doesn’t honor own refund policy!
This article is long since dead but I thought as a former Costco employee I would help set the record straight. I worked for them while I was in college and I really enjoyed working there. I have since moved on to other things.
While I was there it was routine for people to buy HDTV, then bring them back in 6 months to a year and get their refund and apply that for the newest model on the floor. The TV was now ancient and costco after verifying nothing was wrong with it would have to try to sell it as used. This happened time and time again. Most costco stores care so much about thier reputation that they will put up with the bad apples to keep their reputation. However I don’t think it’s fair and I’m am sorry that the company felt the best way to keep their reputation was to apply the rules fairly to all customers rather than just getting rid of the bad apples.
I bet at least a few of you remember the uproar when Sprint closed 1000 customer accounts as being bad customer. This method prevents costco from getting the same black eye.
Before you call Costco a bad company consider that fact that no one else lets you take a TV back 3 months later. No other company will fight on your behalf to get a warranty issue taken care of. Yes, they actually will fight for their customers to make sure a waranty repair happens.
Dear Costco Employee:
No other company charges you a yearly fee for the privilege of purchasing their products, either!
How does the does the Costco satisfaction guarantee read?
“We guarantee your satisfaction on every product we sell, with a full refund.”
No conditions. No fine print. If this is the promise they make when they take your money, they must be willing to honor that promise down the road.
I’d like to hear from anyone who has had a problem with Costco.
Thanks,
Jon-Lars
I am a memeber of Costo, but have never purchased electronics from the store. I want to beleive that this makes me somewhat unbiased in regards to Costo’s new policy being as I have never been influced to purchase product soley based on this dynamic. I am not at all shocked that people abused the policy. Unforntunately, there are too many people out there lacking a strong ethical background. Had everyone acted in the good faith manner that the original policy was instilled, there would be no issues. Costo would have an opportunity to handle the expected and project rate of return of faulty product based on manufacturing defects while still maintaining a profit. However, I as more an more unethical people caught wind of very liberal and generous policy, Costco was forced to absorb the complexity of the expenses associated with the high rate of returns products. Considering that any company succeeds based on profitability, you need to be realistic about whether we honestly expect Costco to be able to absorbed the cost of a high rate of returns on non-faulty products and still turn a profit. If it were my store, there would be no way I could handle the cost of all of the logisitcs involved in processing these unfounded returns, the cost of the increased inventory after the point of sale, and the cost of absorbing the difference in price of selling a “used” product vs. a “new” product. If thise were the case, I would have to consider things like increasing a “membership” fee, sellig the product at a higher price, charge a fee for returns. All of these things come with negative affects that would eventually affect my ability to maintain a customer base or maintain a stable level of operations. It would not work - I have to compete with my competitors and stay profitible. If people are abusing the policy that people will pay the price. The foundation of a free market economy is not based on charity. Someone has to pay for the bad act of people and there is no way we could expect it to be a company whose sole existence is based on profit. It is a natural respsonse by any company to act according. For every action there is an opposite and equal reation. This saying is stating that nature balances itself. A free market economy is the same way. You people are silly for being up an arms about this. I could careless if Costco succeeds as a company. I like it, but the truth of the matter is, if it fails, a better company will succeed in its place. The customer/client relationship will balance itself out one way or another. If you really think this is a mistake on Costco’s part and they are missing the boat on this, then open up your own store under the guidelines you consider fair. I will say if you have a company that attempts to instill the original Costco policy of returns, I will say good luck with that DUMMY!
First of all, if you were to call Vizio you would get a bunch of mormon techies sitting in magna Utah without much to do. I know this for a fact. Also, Vizio is a break out name but the company behind it you might find sounds familiar, ever heard of LG? OH THEY ARE MAKING VIZIO TVS AT A SUPER LOW PRICE AND COSTCO HAPPENS TO BE THEIR NUMBER ONE RETAILER. Vizios are a gamble its true but their defect rates I promis are no higher then that of Mitsubishi who should stick to cars and motorcycles. Costco has a great return policy because their members pay upwards of fifty bucks a month to have the perks they do. Rather then letting angry bloggers tell you about the policy why don’t you do a little research, you can find notes from meetings between costco’s CEO and his stolkholders explaining the exact reason for change and how they fear that custoemer’s will react badly. Believe me board members and shareholders at costco care about customer’s. However Costco’s outsanding employee treatment and great pay are both things of concern for the shareholder so if your scared that your costco membership money isn’t going back to you don’t worry because the employees will take the hit before customers will.
I was very annoyed to learn that my ipod nano, purchased this July could not be returned in November when it failed to work. I did not even know about the policy change and unless you purchase on-line, you don’t really see that exception for “ipods” to their overall customer satisfaction guarantee.
For those of you who complain about a refund policy:
F/U. Use the freakin manufacturers policy if the store’s policy runs out. Ya, I understand if there is a problem w/a store not honoring their return policy and it happens, but not as much as you would like to beleive. C’mon, you are just mad because your item broke, malfunctioned, etc. Don’t take it out on the store that sold you something. You should be happy that you even have a refund policy at a store. These guys are providing you a service with a “second chance” (if the process works for you). What more do you want? Don’t get me wrong. If they don’t honor the policy, of course you are in the right to complain. But, please, stop freakin complaining about a store that changes its policy (shortening it or something). Do you really believe that you HAVE THE RIGHT TO RETURN SOMETHING AFTER YOU HAVE USED IT for a while. Yes, the store policy reads this, but do you really believe it, Really? If you do, or you think this way, then please, leave. Leave and go somewhere where you will get a better freakin deal. Here’s a plan: Go buy a world map. Buy some darts. Use one of the darts to throw at the map while you are blindfolded. Move to the place where the dart landed. If the dart landed on the U.S., then use the other darts to poke your eyes out. This way, you won’t have to worry about return policies that companies offer you, because you won’t care about those items you can’t see anyway.
Be happy with what you have here my friends. Really, stop expecting something for nothing. Again, if it broke early, then I understand. But after the policy, or expecting an endless return policy, get real. By the way if you are unhappy with store policy, go out and see how it is in the real business world and open up your own store you leeches. Cheap Bastards. LIVE A LITTLE, WON’T YOU?
I am one who complains about a return policy when it is not honored as posted. As one poster mentions earlier the posted policy when you make a purchase as a paying member is the following:“We guarantee your satisfaction on every product we sell, with a full refund.” Now with the exception of electronics they have drawn a line in the sand. That is fine by me as long as it has been posted. But for items that are not exceptions, it ought to remain to be honored by the so-called lifetime policy. Costco has developed a goodwill and following via word of mouth which has created their profitability. They are a corporation and they make business decisions, accordingly. They are banking on those that won’t actually return items because of inconvenience and conduct business on a volume basis. Does anyone actually think people would buy things in bulk if they didn’t have a liberal policy? Their policy is the foundation of their success and their own employees promote the policy until you have what they deem a questionable return. Well in my opinion completely change your policy rather than be deceptive in how you advertise your policy and then not abide to such policy. Ethics are a personal choice but a black and white policy should have no gray areas. If there are gray areas they should fall to the benefit of the consumer who pays the membership fee. If anything I find it highly UNETHICAL to post a policy that you can choose to not honor yet benefit and promote the goodwill of the policy to encourage sales. If Costco stopped posting and changed their policy I bet their business model would show flaws very quickly. The abuse is Costco’s deception against the consumer not the other way around.
I am a very loyal Costco customer but my loyalty goes only so far. I can tell you that when you return an item without a receipt they will give you the lowest system price even though they maintain a database that has the higher amount you paid. In my opinion they are taking advantage of me at that point and make no apologies about it. I am allright with that so long as they honor my return in the same vain when I do have a receipt regardless of the length of time. You shouldn’t have it both ways.
I’m glad Costco finally enforce the policy. It’s for people who abuses the system. I know people who bought the TV from Costco and return it after 5 yrs. That’s insane! I hope Costco would keep track of people who abuse the system and cut them off. They should track these abuser and fine them with a 15% restocking fee. Let’s track the Costco abuser.
You said it all, “I am a very loyal Costco customer but my loyalty goes only so far.” Ya-, you are only loyal if it serves YOU right. Very simple–Buy something, get your use out of it and when it breaks, go out and buy a new one. Don’t expect someone (the company) to be responsible for your products FOREVER! You seem like the type that agrees with bullshit lawsuits and such. Thanks.
Well…my boy friend purchased and Olympus Stylus from Costco for my birthday in August 2007. I have taken less than 500 pictures with it. I use it maybe once a month. I haven’t used the camera since February. Last weekend we were out of town and when I tried to turn it on the light flashed a couple of times but it never came on…I tried purchasing a new battery but the new battery didn’t work either. The camera is clearly defective. It is waterproof and shockproof so there is nothing I could have done to it that would damage it. I think that if an item is defective and can be proven defective Costco should take it back at least until the manufacturer’s warranty expires. I have a wedding to go to this weekend I need my camera. I don’t have time to return it to the manufacturer for repair or replacement. Should I purchase I new camera from Costco and return within 90 days??? I mean that is what people are going to do now…right? I do not think that Costco should be responsible for my camera forever by any means, but I do think they should stand behind it as long as the manufacturer does I mean these products are made JUST FOR COSTCO you can’t buy the same model number at any other store.
Here is the story,I believe that out there somewhere there are good people.I also believe there are stupid people out there.You can really want Costco to hold your hand and take the crap you have used and used until it “Broke”. I see it everyday cause I work there in electronics.I agree our policy is and was the best,however yes there are those who spoil it for everyone. I wanna say that there are legit cases however because we have been taken advantage of we cannot descriminate.90 Days is far more then anyone gives you and we extended the warranty ffor another year ha that is the best ever,now learn to walk again and contact the 866 number we gave you and get your shit fixed jesus h christ.To all of you who have endured the shit we have to put up with i’m sorry thanks for sticking with costco
If a product is at Costco that I want or need I buy it there rather than somewhere else, even if it costs a little more. They have a excellent return policy and are very freindly. To everone out there that is abusing the return policy I say “STOP” or we will all loose out on a good thing. Be a good customer and they will be good to you! I spend 15k to 20k per year at the store. Take care everyone.
Costco is the country’s best retailer and its return policy is outstanding. Any of you trying to find fault with it are just looking for something to complain about. Costco’s return policy on everything except electronics is remakable: IF YOU ARE EVER DISSATISFIED FOR ANY REASON, RETURN FOR A FULL REFUND. The policy on electronics, even after being revised to curb abuses, is still better than most. You have 90 days to get a full refund. Try getting that from any other electronics retailer.
True, Costco charges a membership fee, but you can recover that with a single purchase there. The prices are great and so is the quality.
By the way, since when did Panasonic and Sony become second-rate TV manufacturers? Costco sells them, too, you know.
Not long ago, we bought a $1,200 patio set at our local Costco. A few months later, we saw the identical set on sale for $900. When we asked Costco to match the price, they did so, except they reduced it to $600. We questioned that, thinking it was a mistake and not wanting to take advantage of the store. Costco, as it turns out, had reduced the item further but hadn’t yet marked it down on the floor. Had the manager who gave us the refund not been honest, he could have easily kept the extra $300. Now THAT is a good retailer.
I hate shopping in general but I really enjoy shopping at Costco. They pay their employees better than most retailers and it really shows when you encounter them. Plus, they insist on high quality merchandise. Anyone who doesn’t like Costco is free to switch to Sam’s Club or its woefully downtrodden sister, Walmart. There you will find an ample supply of crappy goods and braindead employees working for minimum wage.
I am wondering if anyone is experiencing Costco’s policy of their automobile batteries that have FREE REPLACEMENT on the label for 36 months not being honored? Costco seems to be confusing the word replacement for refund. They believe giving you money back that you paid for the battery 3 years ago is correct. In their minds that means you didn’t pay for the battery. Ummm the label clear says replacement!!!!! Of course when you go to get another battery in their battery department the price has gone up 20-30 bucks. How is that free when you have to pay more just to get a battery to drive your car out of the parking lot? After talking with the manager the next day she agreed that the warranty clearly states replacement and she is going to get me a battery for me at no charge as their warranty clearly states. She hasn’t had any complaints, anyone else out there have this happen to them?
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