My first thought was - who returns toilet paper!?!
But I suppose if you're a hoarder or reseller then you'd probably return whatever you don't need/sell. So good move.
But I suppose if you're a hoarder or reseller then you'd probably return whatever you don't need/sell. So good move.
This policy pushes back on that mindset.
IIRC, lots of consumer contracts contain language saying the terms are subject to change at any time with little or no notice.
Maybe so, but the "notice" probably could be something that's practically meaningless, like updating the terms on their website, or something.
Alternatively, their return policy may have language forbidding some kind of ill-defined "abuse" of the policy, which can be interpreted to forbid anything they'd want to forbid.
In any case, Costco has lawyers that unilaterally write this stuff in its favor, so I highly doubt it violated any of its own contracts.
IANAL, but that's breach of contract. To amend the contract, both parties have to assent. That's why you get those "terms of service" updates that always mention, "and if you don't like the new terms, here's how to delete your account," since your usage of the service constitutes assent to the terms.
Purchasing a good is different, it's more bilateral because both parties are still responsible after the initial exchange for delivering on their promises. So if your check bounces, you still owe them, and if the goods are junk, they still owe you.
The tricky part here is figuring out what the contract is. When you purchase goods in the US, the framework of the contract you're engaging in is laid out by the Uniform Commercial Code, if you want to look that up.
Costco has a satisfaction guarantee[1] and they will refund your money but there's an asterisk: "*Limitations apply. See the membership counter or Costco.com for details."
I couldn't find anything more on their site.
A "guarantee" has a legal meaning[2]:
> 4) a promise to make a product good if it has some defect.
So I think it means a customer would be required to explain why he's unsatisfied with the goods, in what way they're deficient.
That someone bought too much TP doesn't make it deficient.
[1]: https://customerservice.costco.com/app/answers/detail/a_id/1...
[2]: https://legal-dictionary.thefreedictionary.com/guarantee
Yes, it is. Until now, absolutely nobody would care if you wanted to buy TP by the pallet, and Costco would be happy to let you return it if you wanted to.
> there will be more instances of hoarding in these communities in the future.
By all means make a new rule and communicate it for the future. I only object to retroactively punishing previously-allowed behavior.
Judging by the balance of comments, and the comment I’m replying to approaching #DDD, people are having a surprisingly hard time with it.
Does it only apply to return policy? Or could CostCo also, say, change the price retroactively?
Does it work the other way around? Say I order from Amazon. Then, I notice many people don’t like them. Labor safety, no paid sick leave, etc. Can I refuse to pay? I’ll tell them why and they can better themselves.
Next time this happens, the memory will help deter the hoarders and profiteers.
- Bag of potatoes almost completely empty. The guy had a few potatoes that were sprouting roots. Costco refunded the cost of the entire bag.
- Cart full of sushi platters. Obviously somebody bought it for a party and didn't finish it. Again Costco refunded.
That's a happy customer, damn.
Incremental levels of management get involved and sometimes a lawyer. By that point everybody loses. But that's enough for an idiot customer. All on top of lost future sales.
Buying back their unsaleable junk is quick. Costco tracks customers so it's fairly easy for them to track abuse and find a cut off point.
Nordstrom doesn't do that anymore. Too many abusers.
The secret to this policy was that we had gross (?) margins of 60%+. Throwing away a $20 product would cost us maybe $8.
The other secret was that for the few incidents where we felt someone was trying to scam us, the next time you wanted to order, just as you were about to enter your credit card number, you would be redirected to our competition.