does anyone know if it is illegal for costco to take away a membership for following their own return policy?

Question

does anyone know if it is illegal for costco to take away a membership for following their own return policy? my brother has returned numerous items and costco has this in their history and took away his membrshp. costco had a policy that clearly stated " satisfaction guarenteed, if at anytime you are unsatisfied with your purchase, simply bring back the item with the receipt and receive a full refund" costco has since changed its policy to 90 days for electronics. my brother broke no rules and costco does not have it written anywhere that the refund policy has limits. my brother is upset because he could have went to best buy and got the same tv with a warranty but chose costco because of the guarentee.

Answer 1

I agree with Prince Dog, you have to read the fine line, because they can reserve the right to take membership away. IF it's in Writing.

Also if your brother takes legal action, they will ask if he had the receipts all the times he has returned the items. Because They will start to suspect fraud. Ppl try to return items frequently with no receipt, esp high ticket items, and even though your brother may be innocent, and followed all the rule, but if he did not have a receipt all the times, that's were the problem lays.

the ONLY way they can tell you NO MORE MEMEBERSHIP its if he did not have a receipt, they will then take his driver's license or state ID information and will keep it on file.

the more he tries to exchange or return the items without a receipt he is put into their system. The more it happens, they tend to question why does he never have a receipt??


I used to work at a Sams Club...similar to Costco and I worked in Smalls claims court.

Answer 2

They need to follow their own policy, and it sounds like they are. They also have a right to change their policy, which could disenfranchise some members, which appeared to be what happened to your brother.
The unfortunate part is that the few who abuse the return policy, or any policies, force the company to enforce tighter regulations. Ultimately, the company was losing money in the area of returns from people abusing the return policy. By making return standards tighter, they are able to save money, and keep product costs down- which is the reason most members signed up for Costco, not for their lenient return policy.

Answer 3

It is not illegal.

Although a return policy is satisfaction guaranteed, people who are chronically unsatisfied but continue to subject themselves to shopping at a place where they no they will not be satisfied need to be stopped.

Lets put it this way.

Would you continue to give business to ap place that does not provide a satisfactory product or service?

Would you consider being a repeat shopper at a location a sign of satisfaction?

However if you have somebody who insists upon doing business with you at a certain point you have to assume you are satisfied,

By your brother continually purchasing and returning items he is most like trying to abuse the system. At a certain point Costco has reviewed his account and notice that he is a repeat shopper, however returns most of his purchases. They have assumed that by him being a repeat shopper he must be satisfied and therefore their return policy does not apply.

Answer 4

Costco can revoke a membership any time they want. If your brother is a chronic "buy and returner" that is abusive to the store and I would kick him out too.

Answer 5

Chronic returners cost us all millions of dollars every year. It is essentially the same thing as shoplifting in terms of cost to the company which gets passed on to everyone else. Cosco membership is a PRIVATE membership and can be revoked by Cosco at any time for any reason. If you don't like that you are free to shop elsewhere. Cosco is in the business to make money. Based on your brother's apparent propensity to return items it is clear that their computer model shows that he is costing them (and everyone else that shops there) more money to be there then he is paying back. This is a valid reason to terminate his membership in any state.

Answer 6

No it is not illegal, but I can understand how it can be frustrating to deal with.

Costco isn't the only one that keeps these records now, you do understand that right? Every store that has a check cashing or record-keeping service gets as part of that service a "heads-up" on customers who consistently return items.

So you might shop at Macy's for awhile and return a bunch of stuff, then go to Palais Royal and find that they tell you at the time of purchase that there is no return policy for you because of it.

Bottom line is, be careful how often you return stuff. Be a better shopper and find the stuff at the right price and right size before buying it.

Answer 7

Doesn't sound like he broke any rules.

But, What is your brother's history, did he have a receipt???

In Costco's fine line, does it say they reserve the right to take membership away???


I understand your brother is frustrated, and heck, I would be furious, but from a legal standpoint, if he should decide to take legal action, answer the questions above!


PS that sucks. i will not go to Costco.

Answer 8

If your brother has returned so many items it sounds like he is a PIA. I wouldn't want to deal with him either. What's he doing...buying on impulse then shops around and returns if he finds a lower price. Or is he just dissatisfied with everything and a constant complainer.

All stores have the right to refuse service to anyone.

Answer 9

Not "illegal", since COSTCO can make their own rules, but seemingly unfair. Your brother can protest to management or higher-ups about his treatment, and of course shop elsewhere.

Answer 10

your brother is upset, but Cosco has a right to take away membership if they feel something illegal is going on.

if you can prove them wrong, then you have a case against them and sue.