Does Costco have the right to check your receipt?

July 27th, 2010

Insider

There was an interesting story this past week about a guy being illegally detained by Costco employees. He felt he didn’t need to show the receipt checker his receipt when walking out and tried to walk out right past them. At that point he was stopped by 3 employees, one being the store manager. They grabbed his cart, refused to let him leave, and demanded to see his receipt, the contents of his cart, and inside his handbag. This guy wasn’t trying to steal anything, he just believes strongly in protecting his fourth amendment right (guards against unreasonable searches and seizures).

Eventually the employees let the guy go, but the cops came when he was in the parking lot. He had to listen to lots of lectures from the manager and cops, but I don’t think he ever had to show his receipt. That is a lot of grief for not having someone quickly glance at your receipt and mark it with a sharpie. According to U.S. law, Costco would have to see you commit a crime to detain you, but did you know that according to the Costco membership agreement there’s an unconditional consent to search? If you didn’t consent to a search Costco would probably simply revoke your membership. Definitely not worth it in my opinion! What are your thoughts on this subject?

Posted in Other News

Tags: news, receipt

You can leave a response, or trackback from your own site.

greg hines

Interesting, you say the policy has an unconditional consent to search? It states: “Costco reserves the right to inspect any container, backpack, briefcase, etc., upon entering or leaving the warehouse.” This statement is listing types of property (etc. infers any other type of property), NOT your person, nor does it mention detention. And, this states INSIDE the warehouse, not outside, as you state. Also, detention for a breach of contract (the COSTCO policy), not for a lack of probable cause, is considered false imprisonment in most states.
figman

Today at Costco Culver City, Ca. I was hassled by store security who claimed they were checking to make sure I hadn’t stolen anything and that the receipt was for the items I had just purchased. If that was indeed true, then they would have to spend considerably more time actually correlating the purchased items back to the receipt. The cursory glance the security guard gave had no chance of ever accomplishing his stated goal. There was no way anyone but Superman could have even read the line items on the receipt from the distance he saw it from. When I told the guard that his once over couldn’t have accomplished anything useful, there was no response at all. Interestingly enough, the receipt checkers at the local Home Depot seem to know that what they’re doing is completely and utterly useless and and even agree with you when you remind them that you are now the legal owners of the products you just bought.
Kyle

It is perfectly legal for Costco to ask to see my receipt, and it is perfectly legal for me to decline their request and keep walking. Costco cannot detain me or my property (yes, it is my property as soon as they get the approval on my Amex, even if it’s in their store) without probable cause that I’ve shoplifted. And probable cause means that they have video or a witness of me shoplifting. Declining their receipt request does not constitute probable cause.

I have no problem with people volunteering their receipt, even if it slows me down a bit. But I choose not to be an unpaid part of Costco’s loss prevention department. I’ve been politely declining their receipt check for years, mostly without incident. On the odd occasion that I get questioned by the receipt checker, I acknowledge their policy, and inform them that my policy is that they may view my receipt for my receipt checking fee of $ 10. Cash only and payment upfront. They never take that option, so I guess the receipt isn’t all that important to them after all.
Thethimman

Yesterday as I was leaving Costco at approx 1100 in the morning I came to a line with about 10 parties waiting to be checked. Only one person was checking the reciepts. I stood there for a while and noticed that the person checking the first basket and was looking at a full basket with the look of bewilderment. (There was only one check and usually there are two) I waited for a while and then went through the door. She ran after me and grabbed my are scratching it.
It did not say anything because it did not draw blood. I was parked in the first handicaped space and watched 2 security preople running all over the parking lot looking for me in their carts. (She was not security; just a checker. She was problably new.) The security guard finally found me as I was putting the items in my card. I pulled up in the rear of my car. I asked him what he wanted.
He said it was Costco’s policy to check the reciecpts. I said I did not care what their policy. I then asked him if he saw me stealing anything. He said, well did yyou. I then said are you going to arrest. He then said, no. I said get away, and leave me alone, that I was leaving. Which he did.

Normally I submit and show my receipt. As long as I do not have to wait long.
I am a 65 year old white guy. I have never had anyone ever really check my cart aat any large store. They just at me and mark my reciept. I have watched, and they hardly check anyone over 50, no matter who they are. I’m suprised that someone has not gone after there for profiling.

I did not know that I signed away my rights where I joined. I still will not change my habits. I went there today and bought gas and some items inside. I guess my membership is still good.
- Anonymous
  
  Thanks for the information. Glad I could clarify the rights in this case.
Wrt

Leave and say no thanks to a receipt check. If they attempt to detain you threaten to call the police for being falsely imprisoned. If they touch you, physically defend yourself. Most of the time you will have no problem as it is illegal for them to detain you.
huey4745

Are they checking to see if I got everything I paid for or that the price is correct?

They are mostly checking on collusion between checkers and customers.
Snoozinjoe

As part of your membership you agree UP FRONT to let them check receipts in order to deter shoplifting. If you are a member then you have agreed to this. If you don’t agree, don’t go there.
- Kyle
  
  Again, I have no problem with people volunteering their receipt. But there’s no law that requires me to provide my receipt as a condition of leaving the store. A store’s policy does not impose new laws on me and my property, nor does it negate legal protections that protect me from non-consensual searches of me or my property. If you like the receipt policy, feel free to volunteer your receipt. If you don’t like the policy, a simple “no thanks” as you walk past the receipt checkers is adequate. Of course, they may follow you and get aggressive, but if you haven’t shoplifted, you have nothing to fear. Just keep walking.
Dave

You say not worth it. Maybe Costco should stop bugging the crap out of their customers and wasting time for everyone. What the co. Is doing Serves no purpose. Most of your customers hate that the most about your store. You would think if you can fix what most people hate the by stoppinqg this dum … Rule
Thank you please do something
Tplonetree

I can’t believe how RIDICULOUS some of you are–why must you look for ways to be offended??? Costco is able to keep costs low because they do many things very well, including keeping their losses low–
Declining to show your receipt, calling the police, false imprisonment???? Really??? Get over it and get a life–if you don’t like their policy–DON’T SHOP THERE! Stop trying to create an equivalency between Costco’s receipt policy and your constitutional rights–find something to actually do with your life–ARGH!!!!!
jo

hate this policy!! If you go to a busy Costco there is often a line to
check out, as well as a line to get out the door. Since I bring my own
shopping bags they don’t really check inside, so it is useless! It
annoys the costumers so what is the point!!! If the policy says that
they have a right to search, I believe all stores probably have a right
but they only do it if there is just cause…not every single costumer.
- Kyle
  
  you’re confusing Costco policy with US law. Costco has the right to ask to see a receipt. You have the legal right to decline their request and keep walking. They can’t detain you for declining their request (unless they have actual evidence of you shoplifting). If I decline their request, the worst thing is that I am non-compliant with Costco policy. Big Deal ! Costco is not law enforcement, and they can’t detain you. The receipt check is VOLUNTARY ! If you choose not to play security theater with them, you don’t have to. If you want to participate in their pointless exercise, you have that right as well.
  - http://www.facebook.com/djreservations Aaron Schumacher
    
    Kyle, No company can trump US law. In fact if I have you sign a contract with a bunch of crazy points in it that are no legal, a judge does not have to enforce it just becouse I signed it. Not even you can take away your own rights.
- lee vann
  
  MAY BE IF THEY ARE GOING TO STOP ME AND CHECK MY RECEIPT THEY SHOULD
  ACTUALLY CHECK IT NOT JUST PUT A MARK ON IT HOW LONG WOULD THAT TAKE TO
  CHECK EVERY THING IN THE CART A GUY WITH $1000 WORTH MIGHT HOLD UP THE
  LINE FOR 15 MIN OR MORE TIME IS MONEY AND I DONT HAVE THE TIME TO STAND
  THERE
http://twitter.com/O_oJEREMYo_O Jeremyo_O

YOU ARE GUILTY till proven innocent here @ COSCO
FORGET THE B/S it is not about protecting COSCO’s inventory
It is about desensitization
YOU ARE A CRIMINAL … if not after we invade your privacy and step all over your rights maybe…… maybeeeee you might be not currently guilty
But dont count on it you probably are
Scott

You played this right. You didn’t ask their permission to not show your receipt; you informed them that you would not be complying with their request. Sadly, most people are too afraid of minor confrontation (or just ignorant about their legal rights) to do this.
http://www.facebook.com/van.perl Van Perl

Do you know many stores suffer huge losses from shoplifting ? Most stores do not allow employees from stopping the thief even when they observe the thief.
StPauliGuy

What a circus. I walked today passed this Colma California receipt checking guy. He followed me onto the parking lot, holding and blocking the cart with my stuff in it. If Just spend $360 in that store and they treat me like a criminal at the exit. Security and a manager came, stating that they can do what they want and it’s policy. They followed me to my car calling the police. I gave my membership card to the GM and told him to … with it. And took off feeling good.

Costco lost today a good customer. I will shop now at places where they actually treat me like a customer and not like a shop lifter. I’ve spend to much money at Costco anyway, I never managed to leave Costco without spending at least $250. Costco is totally rediclas! I feel much better without my membership.
- Logical me
  
  What a bunch of self important crybabies that can’t follow procedure. There are many reasons for the final receipt mark off. One thing is it quickly matches the cart contents to YOU the purchaser and be more sure someone else won’t be allowed to run off while you use the restroom or stop after leaving the cashier to do something and have some idiot run out the door with another person’s cart! It is also a quick double check for errors. Did you get your stamps, cash back? And to mark the receipt showing the merchandise has left the store.
  You agree when you pay membership, the manager can be called and you may turn in your membership if you don’t like the rules.
  IDIOTS, it is not about shoplifting, if you are shoplifting do you think it is going to be in the cart or on the receipt?? *stupid people!* OR how do you expect the people to know that anyone pushing a cart full out the door even went through checkout??
  The warehouse setting is much more loosely open than a regular store. The doorways need to be monitored.
  - lee vann
    
    MAY BE IF THEY ARE GOING TO STOP ME AND CHECK MY RECEIPT THEY SHOULD
    ACTUALLY CHECK IT NOT JUST PUT A MARK ON IT HOW LONG WOULD THAT TAKE TO
    CHECK EVERY THING IN THE CART A GUY WITH $1000 WORTH MIGHT HOLD UP THE
    LINE FOR 15 MIN OR MORE TIME IS MONEY AND I DONT HAVE THE TIME TO STAND
    THERE
http://www.facebook.com/robert.ranes.7 Robert Ranes

By signing up with Cosco you signed an agreement that you would submit yourself to their procedures such as receipt checking. You are completely right. The receipt is your property. However if you break the agreement, your membership will be revoked and future attempts at rejoining will be rejected. Have fun wasting $50 because you are too stupid to read the fine print.
Jason

Firs of all, your forth amendment right protects against unreasonable
search and seizure from the GOVERNMENT, not private entities. Second, I
don’t know about other states, but in California any merchant has the
right to detain another for a reasonable amount of time to ensure no
items are being taken without being purchased (CA PC 490.5). they are
not required to prove that you committed a crime, that requirement is
strictly for peace officers due to the fourth amendment. Whats more, if
you are a member of CostCo you have in fact signed a contract agreeing
to showing your receipt before departure. Your haven’t “signed your
rights away”, your rights were never in question.

Does Costco have the right to check your receipt?

Recent Posts

Recent Comments

Archives