Has anyone else used Costco's refund policy on certain items?

My friend told me about it and I went with her to return her Dyson vacuum. She explained that she bought three years ago and had the receipt. We went to the customer service desk and she explained that it broke and she wanted her money back. I thought she was crazy for thinking they would give her a full refund for a three year old vacuum, but they did. I was shocked and wonder why they allow this? I am sure that they would be losing money if they kept excepting refunds for products they sold over 3 years ago. My friend said she did with a window AC unit from there before too.