• The Wall Street Journal, Tuesday, February 27, 2007 11:45 AM

Costco Wholesale Corp. yesterday said that it would limit full-refund returns of electronic products like televisions, computers, cameras, camcorders, iPods and cell phones to 90 days. In general, Costco allows its customers an unlimited grace period to return purchases for a full refund.

In turn, Costco will extend the manufacturers' warranties on TVs and computers to two years from one.

Returns of consumer electronics -- flat-panel TVs, in particular -- squeezed Costco's profit margins in its latest fiscal year. Costco has posted strong sales of the TVs, but many have been returned as customers encountered difficulty installing them at home. The policy of giving a full refund of the purchase price also allowed for some opportunism, as prices on flat-panel TVs have fallen precipitously in the past year.

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