Is Costco ethical?

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Labor & working conditions Confirmed You decide

Costco expels union reps and harasses workers

Costco expels union representatives and harasses workers for wearing union buttons, sending employees home, removing union literature, and changing locks on union bulletin boards.

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finance.yahoo.com
The Teamsters recently filed unfair labor practice charges against Costco for expelling union representatives, harassing workers for wearing union buttons, sending employees home, removing union literature, and even changing locks on union bulletin boards.
Notably, Costco rejected a proposal that would protect the union's right to post on bulletin boards without interference — an agreement that could have addressed some of these labor board complaints.

Labor & working conditions Confirmed In favor

Costco raises hourly worker pay to over $30

Costco has told its hourly store workers their pay will increase to more than $30 per hour.

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usatoday.com
Wholesale retailer Costco has told its employees that pay for most of hourly store workers will increase to more than $30.

Corporate conduct Recall Against

Costco recalls Ivena shower benches for fall hazard

Costco recalled Ivena shower benches sold exclusively at Costco due to a fall hazard.

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cpsc.gov

Shower Benches Recalled Due to Fall Hazard; Made by Ivena and Sold Exclusively at Costco (Recall Alert)

Shower Benches Recalled Due to Fall Hazard; Made by Ivena and Sold Exclusively at Costco (Recall Alert)

Corporate conduct Recall Against

Costco recalls Ubio Labs power banks due to fire hazard

Costco recalled Ubio Labs power banks after they caught fire on a commercial flight.

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cpsc.gov

Costco Recalls Ubio Labs Power Banks Due to Fire Hazard; Caught Fire on Commercial Flight (Recall Alert)

Costco Recalls Ubio Labs Power Banks Due to Fire Hazard; Caught Fire on Commercial Flight (Recall Alert)

Workplace equity Allegation Against

Costco is accused of disability discrimination

A federal jury in California ruled against Costco in a disability discrimination lawsuit involving a former employee.

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finance.yahoo.com
A federal jury in California rules against Costco Wholesale (NasdaqGS:COST) in a disability discrimination lawsuit involving a former employee.

Corporate conduct Recall Against

Costco recalls patio swings after injury reports

Costco recalled patio swings following reports of injuries from falls.

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abc7.com
Costco patio swings recalled after reports of injuries from falls

Labor & working conditions Confirmed In favor

Costco raises hourly worker pay to $16

Costco is raising the minimum wage for its hourly staff to $16 from next week.

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finance.yahoo.com
(Reuters) - Costco Wholesale Corp is raising the minimum wage for its hourly staff to $16 from next week, a dollar more than what its competitors Amazon.com Inc and Target Corp pay per hour.
cbsnews.com
Costco in July 2024 increased its starting wage to at least $19.50 for entry-level positions in the U.S. and Canada. It also increased its highest wage scale by $1 an hour and took other steps to bring the company's average rate for hourly workers to $31 by the end of 2024.
latintimes.com
Costco Wholesale announced that they would be increasing pay for the majority of the retailer's hourly workers to over $30 per hour, according to a memo sent out to employees.
newsnationnow.com
(Reuters) — Costco Wholesale Corp is raising the minimum wage for its hourly staff to $16 from next week, a dollar more than what its competitors Amazon.com Inc and Target Corp pay per hour.

Labor & working conditions Confirmed In favor

Costco raises hourly worker pay to $32

Costco is increasing hourly wages to more than $30, with clerks set to make almost $32 an hour starting March.

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cbsnews.com
Costco is increasing its pay to more than $30 an hour for hundreds of thousands of workers, with clerks at the top of the retailer's pay scale set to make almost $32 an hour in March.

Labor & working conditions Confirmed In favor

Costco raises entry-level wages to $18.50

Costco increased the starting wage to at least $18.50 for all entry-level positions in the U.S. in September 2023.

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sec.gov
Costco strives to provide our employees with competitive wages and excellent benefits. In March 2023, we increased the top of the wage scales by 85 cents per hour in the U.S, Canada and Puerto Rico. In September of 2023, we increased the starting wage to at least $18.50 for all entry-level positions in the U.S. We have also expanded our benefits in the U.S. to include additional mental health support for children and adults at little to no cost to our employees.
sec.gov
Costco strives to provide our employees with competitive wages and excellent benefits. In July 2024, we increased the starting wage to at least $19.50 for all entry-level positions in the U.S. and Canada. We also increased the top of wage scales by $1 per hour, and increased all other steps of the wage scales by $0.50 per hour, bringing our average hourly rate at the end of 2024 for hourly employees in the U.S. to approximately $31 per hour.
Costco strives to provide our employees with competitive wages and excellent benefits. In July 2024, we increased the starting wage to at least $19.50 for all entry-level positions in the U.S. and Canada.

Labor & working conditions Confirmed In favor

Costco to raise hourly pay to more than $30

Costco plans to raise hourly pay to more than $30 for most workers.

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usatoday.com
Costco to raise hourly pay to more than $30 for most workers: Report

Corporate conduct Recall Against

EKO recalls motion sensor trash cans sold at Costco

EKO recalled its motion sensor trash cans sold exclusively at Costco due to a laceration hazard.

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cpsc.gov

EKO Recalls Motion Sensor Trash Cans Sold Exclusively at Costco Due to Laceration Hazard (Recall Alert)

EKO Recalls Motion Sensor Trash Cans Sold Exclusively at Costco Due to Laceration Hazard (Recall Alert)

Workplace equity Confirmed Against

Costco's unlawful action caused Suppo's psychological distress and wage loss

Costco's unlawful action caused Suppo's psychological distress, which led to her losing wages.

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eeoc.gov
At trial, EEOC Trial Attorneys Richard Mrizek and Laura Feldman argued that Costco knew about the customer's conduct, but failed to take appropriate steps to correct the harassment and prevent it from recurring.
eeoc.gov
Here, the EEOC presented evidence establishing that Costco’s unlawful employment action caused Suppo to take medical leave.
eeoc.gov
But an employee who is “forced to take unpaid leave” due to “severe psychological distress,” Townsend, 995 F.2d at 693, cannot “remain on the job while seeking redress of the harassment.” In this case, where, the EEOC argues, Suppo was unable to work at any job due to Costco’s unlawful action, the “remain on the job” expectation would not have encouraged Case: 17-2432 Document: 42-3 RESTRICTED Filed: 12/22/2017 Pages: 28
This finding provides a basis for the district court to determine, on remand, that Costco’s unlawful employment action “caused [Suppo] severe psychological distress.” Townsend, 995 F.2d at 693.
Finally, although causation and mitigation should be reserved for remand, we note that the trial record provides ample basis for a finding by the district court that Costco’s unlawful action caused Suppo psychological distress that, in turn, caused her to lose wages.
The trial record amply supports a district court finding that Costco’s unlawful action caused Suppo’s emotional distress and lost wages.

Workplace equity Confirmed Against

Costco is cross-appellee in 2017 judgment

Costco is a cross-appellee in a 2017 legal judgment involving a motion for judgment as a matter of law and a motion for new trial.

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eeoc.gov
R.234 (SA.2; ECF No.14-2) (Judgment).[1] On January 18, 2017, Defendant-Appellant Cross-Appellee Costco Wholesale Corp. (“Costco”) timely filed a motion for judgment as a matter of law and a motion for new trial.

Corporate conduct Settlement Against

Costco settles for $14 million

Costco reached a proposed $14 million settlement in a class action lawsuit filed in Washington.

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finance.yahoo.com
The lawsuit, filed in Washington — where Costco is headquartered — accuses the company of violating Washington's Commercial Electronic Mail Act and the Washington Consumer Protection Act.
aol.com
In an email sent to potential settlement class members, it was stated that Costco has been accused of sending emails that “advertised temporary or time-limited promotions to consumers, when in fact Costco knew it was going to extend those promotions past the stated time frame.” A couple of email titles were highlighted in the court-approved notice, such as “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only.”
The lawsuit alleges that Costco misled certain customers and “violated Washington law” by sending marketing emails with “false or misleading subject lines” to Washington residents.
Costco has just reached a proposed $14 million settlement in the “Michael Aaland v. Costco Wholesale Corporation” class action lawsuit, which was filed last year in the company’s home state of Washington.
Costco Just Settled a Major Class Action Lawsuit—and You Could Get More Than $500 Back - AOL

Corporate conduct Confirmed Against

Costco receives refund reports for Trash Cans

Costco received reports from members returning Trash Cans for a refund.

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cpsc.gov
The large majority of reports that Costco received about the Trash Cans were comments from Memhers who were returning the Trash Cans to Costco for a refund, Further.
At Costco's request, the vendor also notified CPSC pursuant to CPSA Section 15(b) a.nd then recalled the Trash Cans in cooperation with CPSC.
RESPONSE OF COSTCO 13.Coste.o's Product Safety Committee reviewed reports associated with the Trash Cans that Costco received over time.

Workplace equity Confirmed You decide

Hamilton James defended workplace inclusion policies

Board chairman Hamilton James defended the company's approach to workplace inclusion at the annual shareholders meeting, countering a shareholder proposal led by a conservative think tank.

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geekwire.com
At its annual shareholders meeting on Thursday, board chairman Hamilton James defended the company’s approach to workplace inclusion, which was challenged by a shareholder proposal spearhead by a conservative think tank.

Corporate conduct Recall Against

Costco recalls Animated Santa

Costco recalled Animated Santa.

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cpsc.gov

Animated Santa Recalled by PriceCostco

Animated Santa Recalled by PriceCostco

Workplace equity Confirmed You decide

Costco has formal diversity office

Costco maintains a formal diversity office and program internally.

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fortune.com
Internally, Costco has kept a formal diversity office and program in place, even as management remains predominantly white—a contrast the company acknowledges while pledging to keep pushing toward its DEI goals.

Workplace equity Confirmed You decide

Costco employs chief diversity officer

Costco employs a chief diversity officer and considers race and gender in hiring, promotions, and supplier selection.

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finance.yahoo.com
Costco continues to employ a chief diversity officer; considers race and gender in hiring, promotions, and selecting its suppliers; and supports organizations "that advance the discriminatory agenda of DEI."

Workplace equity Confirmed Against

Costco patron filed complaint, no resolution offered

A transgender Costco patron said they weren't offered a resolution or contacted again after filing a complaint with the city's civil rights office.

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kansascity.com
But one transgender Costco patron who filed a complaint with the city last year said they weren’t offered any resolution — or even contacted again after sharing their experience with the civil rights office.

People connected to Costco