Costco tightens return policy

There's being generous - and being ridiculous. By having an unlimited grace period to return consumer electronics products for a full refund, Costco's profit margins had been squeezed and earnings pared, to the tune of eight cents a share last year. So Costco today announced it was changing its policy. From now on, customers have 90 days to return electronics items for a full refund (still sounds like a pretty good deal). The revamped policy, which covers televisions, computers, cameras, camcorders, iPods, other MP3 players and cellphones, was introduced today at Costco's 109 locations in California. From the WSJ:

Costco has posted strong sales of the TVs, including a 50% rise in November at stores open for at least a year, but many have been returned as customers encountered difficulty installing them at home. As well, the policy of giving a full refund of the purchase price allowed for some opportunism, as prices on flat-panel TVs have fallen precipitously in the past year.