Return Gifts

So in Japan I know there's a culture of giving 'return gifts' - if you receive a present you're supposed to reciprocate the gesture by giving the person a similar gift. Last week I gave my colleague a gift for his newborn baby. Today he said 'here is a return gift from my baby' and gave me a wrapped up baby blanket. I'm a little confused as I don't have children and don't plan to any time soon. In Japan do people always give return gifts, even if the original gift giver clearly has no need for such an item? Is there anything I can say when giving gifts to avoid the recipient feeling obligated to give me one in return?

It's rather silly aspect giving back a baby blanket to someone who has no children.
What did you give him(his baby)?
You better not to be a closer colleague with him. He sounds like a stranger to me.

It sounds joke for me.

How did you know it's a baby blanket and not something to cover your cold knees?

It was wrapped in baby-themed wrapping paper and the packaging of the blanket had a photo of a baby on it. I gave him a pretty baby dinner set that I found in a gift shop, it wasn't expensive or anything. I appreciate the gift and all but it's a little odd to me as I don't have a baby and was wondering if it's the norm in Japan for people to do this when given presents for their baby! Or maybe he's just a prankster and gave it to make me laugh!

He might take different gift for you. I got so much gift and ready for return gifts but brought something different one.
You may ask him "Thanks for the return gift of baby blanket but why is it for me?".

Good thinking Tokyo Friend, I think this explains what happened, it makes sense now! He took the wrong present to give to me. I feel bad because I opened the present that was meant for the baby. I thought it was strange that it was wrapped in baby wrapping paper! It's too embarrassing to say anything so I will keep the baby blanket, haha!

He might receive so much gift in short time after the baby was born, so he might confuse who was given what gift and the personal info(married, single, married with children, married with no children etc).
So it may consider he sent a wrong gift for you.
If you don't use the blanket, keep it well wrapped and give it to someone who will have a baby soon or equivalent situation. You don't need to buy another gift then. That's an aspect Japanese people often do.

Today giving Return gift culture is everywhere. In Japan this is very old culture. People of japan give the return gifts when ever they got same.

No it's not.

Returning gifts is tipycal Japanese, or Asian the least.

In Western countries you don't expect anything in return when making a present. It's up to the receiver if he wants to return the gift but it's not an obligation at all.