The No. 1 Reason People Have Their Costco Membership Revoked

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Costco offers one of the most generous return policies in the retail business. But here’s the behavior that even Costco will not put up with. 

You know that old movie trope where a soldier has disobeyed orders, and rather than sending them to the stockade, their commanding officer stands in front of them and rips the insignias from their uniform? Losing your Costco membership may not be quite as dramatic as that, but it may feel equally shocking.

However, a person has to go out of their way to lose their membership. Here’s why: The No. 1 reason people have their Costco membership revoked is for abusing the retailer’s return policy.

Keep reading to get an idea of how far Costco has bent over backward to make customers happy. It may help explain why they have to draw the line somewhere.

Rascals among us

No matter how old they get, some people never really grow out of the habit of gaming the system. Some of these folks may return used items because their bank account is empty and they need the money. Or, they may simply want to see how far they can push Costco’s return policy. Whatever the reason for frequent returns, the practice can put a Costco membership at risk.

A few years ago, KIRO 7 News in Seattle asked Costco employees to tell them about some of the returns they’ve dealt with. Here are some of what those employees remember refunding.

Christmas tree

It was the first week of January, and a woman returned her Christmas tree because “it is dead.” We’re unsure how long she thought the tree would live, but she wanted her money back. According to the employee, the woman received a full refund.

Used chicken coop

When a man and his family walked into their local Costco carrying a feces-covered chicken coop, all eyes were on them. While the enclosure had been in use since the year before, the man received a refund.

Underwear

Evidently, underwear is returned in all states. Some come back in the original packaging, and some are returned after being worn. In either case, the member receives a refund.

Wine bottles

One Costco employee told KIRO 7 that a woman returned an empty bottle of wine because it gave her a headache.

Plants

According to employees, it’s common for someone to bring a plant back several months after the Garden Center closes because it has died.

Summer fun

Costco employees have learned not to bat an eye if a customer returns a bathing suit, barbecue grill, patio set, or pool gear in September when summer is over and they no longer have use for them.

Laptop

Another story involves a man who purchased a new laptop and returned it two weeks later. However, after closer inspection, Costco employees realized it wasn’t a two-week-old laptop. The man had peeled the serial sticker from the new laptop and taped it onto one that was beat up, ratty, and at least eight years old.

Fish

The Seattle news station heard about one woman who left fish in her freezer and forgot about it for 13 years. Naturally, once she noticed, she brought it back for a refund.

Pressure washer

Another gutsy customer returned a 15-year-old pressure washer that had — unsurprisingly — stopped working. Whether the customer owned a small business and needed the pressure washer for his job or simply used it around the house, 15 years is a fairly good run. According to Garden Tool Expert, a well-maintained pressure washer should last at least 10 years.

Still, the man received a refund.

Costco gets the last word

The first line of Costco’s “Member Privileges and Conditions” reads, “Costco membership is subject to our Member Privileges & Conditions, which may change from time to time without prior notice.”

Returning a laptop you purchased two weeks earlier because it legitimately did not work out for you is fine, and Costco does make it easy. Trying to pass an old laptop off as the model you purchased 14 days before is not acceptable. Costco considers it an abuse of member privileges.

As generous as the Costco return policy may be, no retailer can afford to give away products indefinitely. If a customer develops a clear pattern of making frivolous returns, Costco will give them a refund for their membership and ask them never to return.

If you’re fond of your Costco membership, all you need to do to protect it is to respect the return policy and know that Costco keeps track of what’s coming back to the store. If possible, keep your returns to a minimum to avoid being flagged.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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