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Costco Return Policy Scam – How the Large Retail Store is Being Altered

If you have ever purchased anything from Costco, you are probably aware of their generous return rules. Costco initiated a “question free” process for any item returned due to breakage or otherwise, and most customers like this policy, but the lax restrictions have created a climate in which some shoppers have established the Costco return policy scam by using the loopholes to take back products that would normally not be accepted by most retailers

Scammers are able to exploit the Costco return policy in a variety of ways, and that has made it difficult for the wholesaler to initiate restrictions that will halt the offenders, yet not create problems for its honest consumers. The following situation illustrates a consumer exploting the Costco returns and damaged products policy to benefit himself and hurt the company.

A Costco consumer, who was basically just seeking the availability of a certain product from a then-occupied customer service agent, personally saw what was probably the most obvious and easy-to-spot employment of the Costco return policy scam. Ahead of this witness was a person who was attempting to take back a high definition television that he had bought over two years ago from Costco. In most cases, Costco probably would have taken the TV back under its Costco returns and damaged products guidelines, but this time, the man was turned away because he had already attemped to return approximately $50,000 in products to get his money back over the past 12 months.

One might be tempted to give the customer the benefit of the doubt and believe he had simply purchased an unfortunate string of defective products, however, this guy was actually an owner of a rental business specializing in electronics, and after a renter completed his lease, the owner then returned the product to Costco. This obvious misuse of the policy was how the owner increased his income without taking risks, however it appears his Cosco return policy scam was going to be stopped. For honest consumers it is nice that Costco provides lenient return guidelines for any of the many real problems that can happen when you purchase an item. Unfortunately, scammers that employ the Costco return policy scam have caused the company to implement a variety of restrictions that apply to several product divisions.

Any return at all decreases the wholesaler’s profit, and due to this, a few restrictions have been initiated to fill in some gaps in the policy and stop the misuse. Costco now requires all electronic products must be returned no later than 3 months after they were bought, and can only be traded in for another item. Costco keeps track of whatever you buy on their digital wholesale database, and they can tell if you attempt to bring an item back after the 90 day time frame stipulated by the Costco returns and damaged products guidelines. It’s really too bad that Costco had to implement such restrictions to halt the Costco return policy scam, however they continue to provide a 24 month additional warranty on electronic items, and that is must more generous than most other store policies.


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