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Costco Settles Membership Class Action

Costco has reportedly settled a lawsuit brought by members who claimed that they were not receiving a full year membership despite having paid for it.

The suit alleged that Costco had unfairly back-dated membership renewals to the date of expiration, so if someone renewed their membership 3 months after expiration, and paid for a full year, they were in fact only receiving 9 months membership privileges.

In addition to changing its renewal policy, Costco is offering, as part of the settlement, all eligible customers between 1 and 3 months free membership time, depending on each individual's renewal times. Customers who lost at least 3 weeks of membership time from March 2001 through March 2009 are eligible.

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Last updated on May-7-09