Lately I’ve been getting increasingly more angry whenever I visit either Costco or Sams Club. I buy a LOT of crap at these places and I’ve got the top membership levels, so why is it that they always want to see my receipt before I leave the damn building?
I mean, let’s face it. I just waited in some horrendous line, they don’t even bag your stuff up for you, and then 50 feet from the checkout they want me to stand in another line and then reproduce my receipt to allow some lackey to glance at it, glance at my cart and draw a line on it with a marker? What the hell is up with that!?!
Now, before I went on a rant about this, I did my research. Did you know that when you join Sam’s Club or Costco you agreed to allow them to not only see your receipts, but actually search your purses, bags, or whatever you have on your person? That’s right campers – you consented!
Costco’s Privileges & Conditions of Your Costco Membership
Under section 9.) General Policies:
- Costco reserves the right to inspect any container, backpack, briefcase, etc., upon entering or leaving the warehouse.
- To ensure that all members are correctly charged for the merchandise purchased, all receipts and merchandise will be inspected as you leave the warehouse.
Sam’s Club’s Conditions & Privileges of Membership
Under General Policies:
- Receipts: To ensure you are charged correctly for the merchandise you have selected, you will be requested to show your receipt when exiting.
- Sam’s Club reserves the right to inspect any container, backpack, briefcase, etc., upon entering or leaving the warehouse and to refuse entry to anyone at our discretion.
Now, the marketing spin that Costco corporate has been putting on the inspections is that “they are saving you money by making sure you are not overcharged on individual items”. HAH! Here is what Jeff Bennion had to say over on the Treemedia forums about that (and I completely agree with him!):
They say that it is to make sure that we are not overcharged. This makes absolutely no sense. Unless Rainman is standing at the door and knows the price of every item in the store and can, at a glance, compare your receipt to his price database in his head, there is no way they can check to see if you were overcharged.
Back Off Nazis!
Before anyone starts giving me some crap like “if you don’t like it, don’t shop there”, let me just remind you – this is America. So piss off if that is your attitude because personally I don’t want to see this sort of thing gain a foothold and wake up one day having to show my papers everywhere I go.
Besides, I agree with Ken Reid’s comments, also on the Treemedia forums:
I find it very strange that the very same citizens who decry the civil right abuses made possible by the Patriot act will happily stand silently among a line of sheeple waiting to be searched.
For those of you that might think I am just being difficult and grouchy, I can tell you that the few of us who have had the backbone to stand up to receipt Nazis are making a difference. Fry’s electronics no longer demands that you present a receipt, they politely ask and when I politely refuse, they stand aside. Wal-Mart does the same.
Legal Grounds
Having said all of that, notice that Sam’s language reads that “…you will be requested to show a receipt….” This is because once you have paid for an item, the ownership has been transferred to YOU! Any attempt to detain you would be a simple case of false arrest, and that would mean a major lawsuit, and probably a large settlement.
In fact, stores are so aware of the legally shaky grounds they are on that all of the large retailers have adopted strict guidelines that store personnel must go through before arresting anyone for shoplifting. Here are Wal-Mart’s and Target’s. Generally speaking employees need to:
- Observe the actual concealment of an item.
- Never lose visual contact with the person (to ensure they don’t put the item down).
- Observe the shoplifter bypass the registers.
- Apprehend the shoplifter immediately as they exit the store.
I actually stopped and held up the line the other day at Costco and asked the guy checking receipts exactly what he’d do if I refused. He told me, and I quote:
“All I could do is say, ‘Sir! Sir!’ But I can’t chase you into the parking lot or anything”
I was talking to my friend Ian over the weekend and he mentioned an article by Aaron Hopkins in which he described an event at Best Buy whereby he was almost illegally detained for a receipt check, and then subsequently corresponded with Best Buy corporate about the ordeal. One of Aaron’s readers, a police officer, even wrote him to let him know he had a similar experience; however, it ended with the police officer notifying the Best Buy employees that next time they would be arrested “for violation of California Penal Code section 236, False Imprisonment.”
I actually confused that article (which I had not seen) with another recent instance that occurred at Circuit City (which one of my regular readers brought to my attention) that resulted in an arrest and a pending civil lawsuit!
Legal Obligations
I’m not a lawyer. Do some research about your local laws before you go inadvertently breaking them. And if you are young, or poor, don’t fight battles you can’t win! Leave them for someone who can afford bail and legal fees. The best you’d be able to do is break even and whine about it. Let someone with means teach these jokers a lesson, otherwise you’ll end up like this guy asking for legal assistance on the Internet.
Father Dan (not a real minister) says:
Unless you signed a contract (CostCo, Sam’s Club, etc) you do not have to nor should you show your receipt to the door monkeys. Why? Once you have purchased the item it is your property. The bag it is in is your property. To allow an “official” of the store to check your bag and receipt is consenting to a search of your property.
Why? Why are you giving up a civil liberty? You are consenting to a search without probable cause. Sure there are all sorts of excuses the store manager will give you. “We are looking out for employee theft” – Great, I’m not your employee. “We are ensuring you weren’t overcharged” – Bullshit. “We are . . . ” – Lying?
He also adds:
Next time you are exiting a store after purchasing something and the door-monkey asks to see you receipt, smile, be polite, keep walking and say “No Thank You.”
“No Thank You.” What a great phrase! How can you argue with that? Fry’s doesn’t anymore. I regularly walk past the line of carts waiting to get out the door and am not stopped. If I’m the only one exiting and get approached I say “No Thank You” and they smile and let me continue. This wasn’t the way it was a year or two ago though. It’s pretty obvious that the employees have received training on the legality of searching customer’s property.
By the way, thanks to my friend Debbie, we have two good articles on this subject from an actual attorney:
I just hope Michael Flynn stops by and answers my very, very important question down in the comments!
Other Writings On This Subject
I am far from the only person who feels this way. Many, many people are becoming more and more vocal about this abuse of our personal liberty. Here are just a few”
- Door checking receipts (WalMart, Costco, Best Buy, Target)
- Customer Confidential
- Receipt Check Policies For Costco, Sam’s Club, And BJ’s
- It ain’t so bad, you could be Exit Door Guy
- Shopping at Costco
- You may not see my receipt.
- Receipt Checks — You Can Say ‘No’
Final Thoughts
Clearly the executives of these companies loathe their customers to subject us to this type of situation. And it costs them business! At this point if I have an option between going to Costco or Sam’s vs. Target or my local grocery store guess who wins! Ding, Ding! That’s right! It ain’t Costco.
As Jeff Herrold said:
However, subjecting customers to TSA inspired inspections of pointlessness is an indignity and annoyance. It’s plainly obvious to both the customer and the poor sap assigned to the duty that they aren’t remotely able to actually match my receipt to what’s in my cart. And when even the Emperor notices he’s naked, it’s time to dump the policy.
Do you think Thomas Jefferson or George Washington would have submitted to this type of inspection? No way in hell. Not even if it was frozen over.
So, next time you are leaving Costco why not insist that they check the prices on every single item in your cart to “ensure you didn’t overpay”, or tell them to step out of the way and let you pass – because, frankly, you shouldn’t be treated like that.
CostCo started getting my business again recently and one thing I noticed was that in the 2-3 years I’ve been absent, somewhere along the line they stopped boxing up my stuff and now just put it directly into the cart =/
Additionally, Walmart matches prices of any store. They match prices I mention without a receipt either. Much more convenient and they have a much broader selection. I hate that it’s pretty much a China Outlet, but I don’t have enough money to complain and shop at SafeWay :o
I’ve never actually thought about this – the only time it annoys me at Costco (which we’ve shopped for years) is when there is a long line, which I think has (luckily/amazingly) only happened a couple/few times. I’d love to keep walking and I wonder what they would do?
I’m not sure what I thought they were checking for – they just do a quick glance at the cart, quick glance at the receipt and really the drawing for my kids takes longer then both combined!
That’s a very good point about using the same receipt multiple times. I should have thought of that benefit, but I guess I was thinking of things that directly benefited me in some way.
In regards to having a good security process, I actually do think that they (Costco anyways) has a pretty good set up so that customers coming in are not going through the same opening as customers exiting. This minimizes confusion and the ease with which a shoplifter could exit. The ones that I’ve been to also have a large display that separates the entrance and exit such that you are almost forced to go through the checkout area in order to leave. And I think that definitive path makes it much easier already to spot shoplifters.
Philip,
On one hand your point is completely valid. I signed the membership agreement. I’ve given Costco tens of thousands of dollars, and I DO actually love shopping there.
But this does not negate the fact that I’ve become increasingly aware that this inspection policy is embarrassing. Having to submit to inspection on the way out the door as if you were in China or something begins to wear on you after a while. Especially when they don’t even take the policy seriously!
They literally do not even check the receipts! So, if they are not going to take it seriously, why do I have to suffer the indignity of the situation?
With regards to the locations I frequent, here are the stores I go to most often:
I have used very strong language in this article and my comments, but I should point out that all of my anger and frustration is targeted at this one infuriating policy. I’ve found that the employees at Costco and Sam’s are actually very good – clearly a notch above the competition. I also enjoy shopping there, spend LOTS of money with them, and continue to support the stores despite the walk of shame every time I leave.
John P.
Derek,
I’d add that another thing they are able to do is to mark the receipts so they cannot be presented for duplicate use. In other words, you can’t leave, come back in, pick up another identical item and leave again with the same receipt.
But that is nothing that good security processes could not prevent anyway.
John
I have definitely noticed that those employees at the exits don’t really look too carefully at the receipts that they are “checking.” The main things that I’ve noticed that they are able to do are:
1. Find duplicate charges
I was going to try to make a longer list, but I couldn’t think of anything else that they’ve ever done. This is not to say that I’m as adamantly against it like you are. I myself have thought it not unheard of since it’s a place where membership is required. Shoplifters have never made me happy because they do increase prices for the rest of us.
However, I think that stores should get rid of the checkers just because they’re inefficient. I didn’t know about the bag or extended search because I, like most people, didn’t read the contract as closely as I should. That is not something that I want!
I’m a fan of your idea to have secret shoppers and video cameras instead. I could definitely get behind that idea.
How can you complain when it is something you singed a contract allowing them to do? What pisses me off is when other stores try and look in my bag, at Costco I know this will happen because it is their policy.
Also they can see if you got charged for two of an item and only have one. So yes what they say about trying to help you from getting over charged is partly true. It’s not the only reason they’re there but it is one of the benefits. I’m wondering what Costco you go to because the one I go to the people at the door are always very nice and fast with their check. I don’t think I have had to wait in line.
Another thing you said was that they don’t bag your stuff. At my local Costco every check stand has two people, one processing your transaction and the other loading every thing in to boxes and then your cart. Now none of what I said can apply to Sam’s club as I have never been there, but I personally believe that Costco is one of the only big mega stores that actually care about it’s custumers and not just the dollar.
I would think, I’m no lawyer though, that if the guard grabs you or tries to physically restrain you during an illegal detainment, you would be allowed to defend yourself. I would see this as assault, with you having the right to defend yourself.
Yes, that’s true. But with Wal-mart, Best Buy, Frys Electronics, Circuit City, Target and all the others that are NOT membership clubs (Costco, Sam’s, BJs, etc.) you have the absolute legal right to ignore them and walk on by.
With the membership clubs I think you have to comply with their requests or:
Of course, keep in mind that any retail store can prevent you from ever coming back by slapping a restraining order on you. But this is highly, highly unlikely to happen for simply refusing to submit to a search. Especially without a police officer standing right there.
John
Well very, very simple. Witness the actual theft, then stop the thieves.
They could put in cameras like Wal-mart and the rest of the retail world, and employ a couple of undercover store security personnel. These folks are very good at their jobs. They catch people all the time – and you don’t have to subject your good customers to intrusive procedures.
I mean come on… the receipt-jockeys don’t even actually check the items on the receipt! They just draw a line on it and move on to the next! So they aren’t preventing jack right now to start with.
What about walmart?.. same deal
So the question becomes: How do they distinguish between the two?
BTW-I wish I would have had a stake in the rock concert scam! Those guys made thousands…cash…very little risk. And just to edify, it was Pink Floyd, Nassau County Coliseum, Long Island NY in early 1980. Following release of “The Wall”, PF scheduled US performances in NY and LA only due to the huge amount of stage gear required for the show. As a huge PF fan, I was there on opening night. Just a bit of rock trivia for ya.
Plus I have never found anything written by legal or marketing to just “say what they mean” ;-) I think it goes against their principles or something.
Debbie,
These are AWESOME articles! Thanks for sharing them, and I’m going to add them to the post as well in case someone misses them in the comments.
A couple of interesting items from that first article:
And from the second article:
So, I highly recommend that everyone read these two articles to hear what an actual lawyer says.
There is just one thing he didn’t address which I would really, really like to know. If I were illegally detained, and store personnel physically grabbed me, do I have the right to physically fight them to get away?
So, I’m leaving the store. I’ve paid for my goods, I am asked to present my receipt for inspection and refuse. A security guard physically grabs my arm. Legally speaking, Can I hit him? Oh, and when do I have to stop hitting him? :-)
John
Dude… if you do try the “No Thank You” thing with the TSA, I’ll be right behind you with my big ass camcorder to get it on film. People would pay to see that. :-)
John
Frank,
I’m certain that you are also correct. Employee shrinkage is a major loss prevention issue. I can’t tell you how many times Holly came home from work over the years and told me stories about having employees arrested for shoplifting. But we aren’t talking about a Coscto (et al.) specific problem, rather one that affects all retailers. And the others don’t make you submit to a body cavity search.
In fact, for what they pay to have greeters and receipt-jockeys at every door I’m sure they could put in better security systems and catch even more shoplifters.
As far as the property issue is concerned, yes you have a point. The building is “their domain” and they can (and obviously) do what they want. But again, this is a commonality with ALL retailers. It is a pre-requisite to doing business that they will have an actual facility within which to conduct said trade. Other retailers don’t send me advertisments every few days in my e-mail, plus every couple of weeks in the snail mail, inviting me to come shop in their fabulous showroom – and then submit me to a strip search when I ingress and egress from their property.
I understand that Costco (et al.) needs to control shrinkage – and I expect them to do so to keep profits for shareholders high, and costs for customers low. But no theft prevention system should ever be intrusive on a paying customer. Only on criminals.
John
PS – why can’t you just come right out and admit that YOU were the one running that rock concert turnstile scam! :-)
Brad,
I think you are correct and that is what they really mean, but if that is true, why not explicitly state it? Something like:
But we all know why they don’t do that, right? Because people would immediately object to being blatantly treated like a criminal. So it’s interesting that we all know what they mean, but because they don’t actually call you a “suspect” to your face we silently submit.
John
I always assumed it was to:
1. Make sure the cashier saw the case of Caffiene Free Diet Coke in the bottom of the cart.
2. Make sure I wasn’t in kahootz with the cashier to steal stuff for the double wide.
3. Embed my children with a favorable impression with the smiley face that the old guy draws on my receipt.
I never really felt like it was a me thing since they don’t pat me down.
I may try the “No thank you” thing with TSA next time I am at the airport. I’ll have to bring a video blogger with me. “Don’t taze me, bro!” :D
I hate these checks, they even do them in the supermarkets here in the Philippines, so when I leave with my 4-5 carts full of stuff for me and my extended family here it takes them forever to check that I didnt steal a toothbrush after spending 5-6 times the security guards salary for the month in the store…
Kim:)
http://legallad.quickanddirtytips.com/LegalLad/store-security-and-your-rights.aspx
http://legallad.quickanddirtytips.com/LegalLad/store-security-part-2.aspx
Your “rant” reminded me of a podcast (two parts) I heard on this subject. (Transcripts are linked above.) Legal Lad (Quick and Dirty Tips) outlines the legalities of these inspections/consumer rights with a fairly balanced perspective between “legal” and “practical”.
Here’s my take on this particular “loss prevention” practice: They’re trying to prevent theft that is ENABLED by cashiers (their own employees). If my cousin Betty works at Sam’s and I happen to shop there, I’m darned sure going to stand in her aisle with 24 items, pay for about 18 of those items, and walk out with a smile. I’ll get together with Betty later (probably at her trailer since it’s a double-wide as opposed to my single unit) and we’ll split the loot we made by selling the stuff on Ebay. I witnessed a scam very similar to this with my own eyes, but in a different context: a rock concert. One person working at the turnstile and one person standing about 50 feet outside the venue selling admission for $100. I literally watched as dozens of people paid and were then directed to enter at ONLY the designated turnstile.
Full disclosure: I do not shop at Sams or WalMart, as I’ve boycotted their stores successfully for over 5 years. This has more to do with their predatory business practices, which have led to considerable destruction within the small retail business sector. The few times I’ve been asked (at Home Depot or Circuit City) for a receipt check, I’ve complied and gone about my business. I don’t necessarily agree that it’s a deprivation of my civil liberties, based on the fact that when asked to do so, I’m on their property. I realize ownership of items has passed to me (if Cousin Betty scanned them all!), but I’m still on their property. In my opinion, we have alot more to fear from our elected representatives depriving us of life, liberty, and the pursuit of happiness than Sam’s and Costco doing so.
My take on the “make sure you are not overcharged for individual items”. I had thought it to mean.. We are making sure people aren’t shoplifting because if we had a lot of shoplifting we’d have to raise the price of the individual items being shoplifted to make up for the loss of the item shoplifted.
I’m not saying I agree with that position either, but I just thought I’d my perspective of what I thought it meant.
I have not really been subjected to any type of inspection, though sometimes if an item doesn’t fit in a bag, the cashier highlights it and I show it to the person at the door who makes some sort of note on the receipt, certainly nothing as complicated as getting through airport security ! Plus there is usually 3 exit doors and only one person at one door and if he/she is busy, I just go out the other door.
As for Walmart, if you ever sit by the exit and watch, it is quite interesting how many people walk out and I hear the “Ding, Please return to the nearest sales associate, it appears we failed to remove the inventory control tag for your purchase”. 99% of the time people just keep on walking and no one seems to chase after them or anything..at least not in my part of the world.