Costco Reportedly Cracks Down on Lenient Return Policy

The warehouse club is reportedly requiring more proof of purchase and checking customer history amid reports of abuse.

Published on Feb. 22, 2026

Got story updates? Submit your updates here. ›

Costco, known for its generous return policy, is reportedly cracking down on questionable returns that have been costing the company a lot of money. Some customers have encountered situations where Costco workers are requiring additional proof of purchase for returns or checking a person's membership history to see how often they return items. The change reportedly stems from incidents of customers returning used Christmas trees well after the holiday season and issues with perishable items.

Why it matters

Costco's return policy has long been a major draw for customers, but the company appears to be responding to abuse of the policy that has become costly. This shift could impact how customers interact with the retailer and may signal a broader trend of stores tightening return policies amid rising fraud.

The details

According to reports, Costco workers have been requiring customers to provide receipts or additional proof of purchase when making returns. The company has also been checking customers' membership histories to see how often they make returns. This change comes after reports of customers abusing the policy, such as returning used Christmas trees long after the holidays. There have also been instances of stricter return policies for perishable items, with one customer saying she was denied a refund for expired milk without physically bringing the item back to the store.

  • In December 2024, a report found that retailers lost $103 billion over fraudulent returns and claims that year, while total merchandise returns reached $685 billion.

The players

Costco

A membership warehouse club that sells a variety of items, from groceries to furniture, and is known for its generous return policy.

Michael Osborne

The CEO of Appriss Retail, a company that analyzes retail losses and return fraud.

Got photos? Submit your photos here. ›

What they’re saying

“It's clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face.”

— Michael Osborne, CEO, Appriss Retail (Appriss Retail)

What’s next

Costco has not publicly addressed any changes to its return policy, but the company may continue to monitor and adjust its policies to address abuse and fraud.

The takeaway

Costco's crackdown on its generous return policy highlights the growing issue of return fraud and abuse, which is costing retailers billions. This shift could signal a broader trend of stores tightening return policies to protect their bottom line, even if it means sacrificing some customer goodwill.