There were too many people returning stuff that they had broken expecting them to take it back and had messed it up for the people who are honest.
I have found Costco to be one of the top customer service performers. By the definition of their business model prices are such that they are extremely competitive. This may result in Costco not being able to do as much as they would like in the way of a warranty for you but I'm sure they will help you in getting the manufacturer to honour any warranty that was involved with your product.
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