Costco tightens rules on popular membership benefit after shoppers started misusing it
The retailer had to face big losses as customers abused the no questions asked return policy.
Feb. 25 2026, Published 6:27 a.m. ET
Costco has long tried to do everything in its power to keep its members happy. The retailer makes a huge part of its revenue from membership fees, and having those memberships renewed each year is perhaps the business’s biggest goal. One of the advantages of being a Costco member is its no-questions-asked return policy. However, due to some abusing this very policy, Costco is now being forced to not be as lenient as it used to be.
A recent report in The Independent states that these days, Costco workers are demanding more proof from customers before they process returns. Even store managers are checking how often customers return products. People have taken advantage of Costco’s leniency, and the retailer has had enough. Fraudulent returns accounted for $104 billion in losses for US retailers in 2024. Unfortunately, some shoppers have been affected by this policy change as their returns were rejected after they failed to provide additional information or receipts.
This change comes after several users shared social media posts of people returning the Christmas trees they had purchased during the holiday season last year. Some even tout this fraudulent practice as a hack, which ultimately affects the profits of the store. The report also states that the retailer deals with all kinds of items being returned, from dead plants to half-eaten meals and couches that are several years old. That said, the change wasn't popular as some users took to Reddit to slam the retailer for becoming stricter with returns.
“In my recent experience, the former ‘no questions asked’ return policy of 10+ years ago has tightened up some, and the employees tend to really dig in on some of the items. It just doesn’t feel like the same easy/friendly experience it was when I first joined,” one user wrote. “Was told any perishable food can’t be returned once it is out of the warehouse. I showed them I just opened the box with no touch on the plastic bag at all. But it did not help. They are firm with their policy,” quipped another.
However, most were unhappy with the customers who abused Costco’s 90-day return policy to no end. Thanks to them, other members also have to deal with the retailer changing their policy. “We can’t have nice things because of the ******** in society who take advantage. I’ve been more than shocked at what I’ve seen people returning to Costco. Last time I was there, some guy was returning a garden hose that looked about 10 years old and had gone through 3 wars. The associate told me people buy huge TVs for the Super Bowl and then return the following day,” one shopper wrote.
“You have to thank the return abusers. Someone I worked with said he would buy furniture, and after it got worn or used for several years, he would return it, laughing that he hadn't had to buy furniture in a long time,” quipped another.
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