Costco class action lawsuit overview:
- Who: Plaintiff Annie Song filed a class action lawsuit against Costco Wholesale Corp.
- Why: Song claims Costco misleads consumers into believing that delivery was free on its website.
- Where: The Costco class action lawsuit was filed in Washington state court.
A new class action lawsuit claims that Costco misleads consumers into believing that delivery is free on its website.
Plaintiff Annie Song filed the class action lawsuit against Costco Wholesale Corp. on Jan. 22 in a Washington state court, alleging violations of state consumer protection laws.
According to the Costco hidden delivery fees lawsuit, the company misrepresents delivery fees on its website, leading consumers to believe they are receiving free or low-cost delivery when in fact the costs are hidden in the product prices.
Song alleges that Costco prominently advertises free delivery for orders over a certain amount and low flat-rate delivery for smaller orders. However, the lawsuit claims that Costco actually incorporates the delivery fee into the product price, making online prices higher than in-store prices.
Costco misleads consumers into believing delivery is free, lawsuit claims
Costco also promises to disclose when an online product is more expensive than its in-store counterpart, but the lawsuit alleges that this disclosure is often missing.
Song claims she ordered items online from Costco believing she was getting free delivery, only to find out later that the same items were cheaper in-store. She argues that she would not have made the purchase if she had known about the hidden delivery fees.
The Costco hidden delivery fees lawsuit seeks to represent a nationwide class of consumers who were allegedly misled by the company’s delivery fee practices. Song is demanding a jury trial and is requesting monetary compensation for all class members, as well as an injunction to require Costco to disclose its true pricing practices.
Song claims in the lawsuit that Costco’s actions give it an unfair advantage over competitors who are transparent about their pricing.
Consumers have recently filed other class action lawsuits claiming several companies charged hidden transaction fees for food items. In addition to those complaints, the Consumer Financial Protection Bureau recently released a report that found payment processing companies charge transaction fees for school lunch programs that often hit low-income families the hardest.
What do you think of the claims in this Costco hidden delivery fees lawsuit? Let us know in the comments.
The plaintiff is represented by Kim D. Stephens and Cecily C. Jordan of Tousley Brain Stephens PLLC and Sophia G. Gold of KalielGold PLLC.
The Costco class action lawsuit is Annie Song v. Costco Wholesale Corporation, Case No. 25-2-01943-8 SEA, in the Superior Court for the State of Washington in and for King County.
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23 thoughts onCostco class action alleges company hides delivery fees on website
This infuriates me. I have always believed Costco to be a reputable company…with great business practices. Because they honor their returns, pride themselves in excellent customer service, promote a very customer and employee positive image, I never thought to compare their in store prices vs. their online prices. I have been purchasing on line for YEARS – in fact the bulk of my Costco purchases are online, especially after Covid. I would not have purchased online if I had any knowledge of this deceitful practice. I’m so disappointed in Costco. Allow us to make educated decisions. If they had openly disclosed there was a price difference, I’m sure many would continue to shop online, but for those of us (like me) who are single parents, the convenience would not have outweighed the cost savings and I would have elected to make my purchases in store if it meant a cost savings. Not cool, Costco!
I heard Costco clearly state that online and warehouse prices are different. I even Googled whether they will price match between online and warehouse prices, and the answer was “No.”. Also, the warehouse doesn’t carry everything available online. So, is there any way to order online items from the warehouse at a cheaper price?
Eg. Dishwasher was $150 cheaper in warehouse but I couldn’t find rest of appliance, not in warehouse to compare price.
If so, please add me—I recently purchased an appliance set and a bed frame.