Costco Pulling Customer Memberships Tied to Return Policy

Joel Eisenberg

Specific actions frequently ignored by consumers has reportedly led to membership revocations.

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CostcoPhoto byShutterstock

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: BusinessInsider.com, ScrapeHero.com, SheFinds.com, and Costco.com.

Introduction

Costco remains the dominant warehouse chain in the U.S. today, based on both revenue and location count.

According to ScrapeHero.com: There are 585 Costco retail stores in the United States as of November 28, 2022. The state with the most number of Costco locations in the U.S. is California, with 134 retail stores, which is about 23% of all Costco retail stores in the U.S.

For information on Costco memberships, my August 22 NewsBreak article, entitled “Money-Saving Membership Hacks For Sam’s Club and Costco,” compares the two titular leading warehouse chains in terms of membership benefits.

What specific broken action, then, continues to cause Costco to actively pull memberships?

Let us explore further.

Costco, 2022

According to an archived article from BusinessInsider.com, “Costco's Generous Return Policy is Ripe For Abuse — Here's What Could Happen if Shoppers Take it Too Far,” related company terms at the time of that writing have largely remained unchanged.

As excerpted from the article: Costco is known for having a very generous return policy. Members can return almost any product at any time if they are not satisfied with it. Some members, however, may see this as an opportunity to return worn or used items several years after buying them. A Costco spokesperson told Business Insider that it is up to the discretion of each store manager to make a decision about whether to process a return, which can be confusing for some shoppers. Making frequent returns can jeopardize your membership status. While Costco says there is no limit to the number of returns a customer can make, at least one member who spoke with Business Insider said her membership was canceled after making a number of returns. 

SheFinds.com picked up on the issue in a November 28, 2022 piece entitled “Costco’s Return Policy Has One Big Catch, A Former Member Reveals.”

The article states: After visiting her local Costco location, Nicksolat told the outlet that a manager noted that she made "too many returns" and that they wouldn't take the printer. After calling Costco's customer service, Nicksolat was informed that her Costco membership was being canceled.

Years-old items attempting to be returned has likely been cause for membership revocation.

As for Costco’s formal contractual words on the matter, CustomerService.Costco.com concludes with the following: *Limitations apply. See the membership counter or Costco.com for details. 

Conclusion

Always review your Costco membership contract guidelines for said limitations, as memberships have reportedly been pulled based on certain related actions taken inadvertently or otherwise.

In the event of additional information or pertinent updates to this matter, I will share them here on NewsBreak.

Thank you for reading.

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I am an award-winning author, screenwriter for film and television, and producer. My mission on News Break is to share socially important perspectives on both culture and pop-culture. Member of PEN America, and the WGA.

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