Costco ends easy electronics-return policy

ISSAQUAH, Wash., Feb. 28 (UPI) -- Membership-club warehouse Costco Wholesale Corp. has ended its liberal U.S. electronics-return policy, the company said.

The return policy for consumer electronics -- such as TVs, computers, cameras and iPods -- will be cut to 90 days from an unlimited time period, starting in March, the suburban Seattle company said.

The earlier policy was costing Costco "literally tens of millions of dollars" a year, Chief Financial Officer Richard Galanti told The Los Angeles Times.

Many customers were reportedly abusing the policy, such as buying TVs, using them for several years and then returning them for new ones, often at lower prices, the Times said.

At the same time, Costco said it would expand manufacturer warranties on computers and TVs to two years from one.

Costco will continue to let shoppers return other types of merchandise for an unlimited period of time, the company said.

Rival Sam's Club, part of Wal-Mart Stores Inc., has a six-month limit for computer returns and a "100 percent satisfaction guarantee" on everything else, a spokeswoman said.