Costco Customers Nationwide Could Join a Class Action Lawsuit—Here’s Why

Customers love shopping at Costco for just about everything. Millions of dedicated shoppers consider the retail giant their go-to. You can find everything at Costco, including grocery items, household staples, flat-screen TVs, appliances, fresh bouquets, beauty products—and even the brand’s cult-favorite hot dogs. However, the beloved wholesale retailer has recently been facing some legal drama from its own customers.

Costco Is Being Sued by Member for Tariff Refunds

Costco was sued on Wednesday, March 11 in a proposed nationwide class action lawsuit that, if won, could result in a refund to its members. The lawsuit reportedly has to do with tariffs introduced by President Donald Trump, along with Costco’s retail pricing policy. The lawsuit was initiated by Costco shopper Matthew Stockov, who resides in Illinois.

According to Business Insider, the filing reads, "Costco is poised to be paid twice for the same unlawful tariff burden.” This refers to Trump’s tariffs, which were invalidated in February 2026 after the Supreme Court and the U.S. Court of International Trade ruled that importers are able to seek refunds.

Stockov claims he purchased tariffed items at Costco at a higher cost—things like food, hygiene products, and even electronics.

In layman’s terms, if Costco gets refunded the high tariffs, so should its shoppers.

Costco’s 'Lower Prices and Better Values'

Ron Vachris, CEO of Costco, recently shared that the wholesale retailer plans to pass any refunds it collects through “lower prices and better values” for shoppers. Costco, along with hundreds of other companies, is suing the U.S. government for refunds pertaining to Trump’s International Emergency Economic Powers Act (IEEPA) tariffs.

Vachris shared during Costco’s quarterly earnings call on Thursday, March 5, “Regarding tariff refunds, it is not yet clear what the process will be, what refunds, if any, will be received, and when this will happen… When legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members through lower prices and better values.”

However, Stockov—and other impacted individuals—seem to be unconvinced. The lawsuit notes, “Returning value 'through lower prices' to an indeterminate group of future shoppers is not restitution. It is a commitment to benefit future purchasers at the expense of past ones.”

Retail Giant Recently Faced Another Lawsuit Over Preservatives

Costco recently faced another class action lawsuit, which claimed the brand falsely advertised its rotisserie chicken as containing “no preservatives.” Files acquired by USA TODAY note that the retailer’s Kirkland Signature Seasoned Rotisserie Chicken actually has two added preservatives: carrageenan and sodium phosphate.

Costco addressed that both preservatives are found in the rotisserie chicken.

“To maintain consistency among the labeling on our rotisserie chickens and the signs in our warehouses/on-line presentations, we have removed statements concerning preservatives from the signs and on-line presentations,” Costco shared in a statement. “We use carrageenan and sodium phosphate to support moisture retention, texture, and product consistency during cooking. Both ingredients are approved by food safety authorities.”