Is it stealing if I was told to dispose of a product and took it home?

Depends upon who told you and what the policy is. I can address retail stores in my area. It's considered stealing - and I've been in Court when these charges have been heard.

The biggest offender in my area is employees of garden shops.

It was damaged flooring returned by an angry customer. Corporate told the manager to dispose of it, the manager told my husband to dispose of it. My husband took it home and used some of the salvageable flooring. The company terminated him for theft, and wants restitution for the flooring. Not concerned about the termination only the restitution. Maine

I think he took and used the merchandise without permission and, yes, he could very well be liable for the full cost. I know it doesn't make sense when it's a discard but I am not surprised. The company owns it and it's their choice where it goes.

I agree with Judy, again. If the flooring was defective in any way the store and manufacturer do not want their reps to be damaged so they destroy the porduct.