Is Costco marking up its prices online? A new lawsuit claims it is.

Costco class action lawsuit claims Costco overcharges for items online vs. in-store - Photo by Marques Thomas on UnSplash

But does the plaintiff really have a leg to stand on? Read Costco’s policy.

First, baby wipes. Then, chargers that caught fire. Now, a lawsuit that revolving around toilet paper.

In a new class action lawsuit, Costco member Annie Song alleges that the discount chain violated state consumer laws and deceptively raises prices on items sold online at Costco.com and pulls that wool over its shoppers’ eyes without informing them.

Song says she purchased a 30-roll count of Charmin Ultra Soft Bath Tissue for $33.49 online at Costco.com, only to find that the exact same toilet paper could be had for $4 less at a Costco warehouse.

She says Costco fails to uphold its promise to consumers by “fraudulently omitting” its online product mark-up and that, at no point during her transaction on Costco.com, did the company disclose that the toilet paper might be available in-store at a cheaper price. 

“By failing to disclose the truth to consumers about its online product mark-up practices and the substantial price differential between identical items sold online and in-store, Costco deceives consumers and gains an unfair upper hand on competitors that fairly disclose their true pricing practices online,” Song says. 

But does Costco fail to disclose what Song claims they do? ConsumerAffairs tracked down Costco’s policy on situations like this and it says:

“As you may already know, not all products sold on Costco.com are available at your local Costco warehouse. Also, products sold online may have different pricing than the same products sold at your local Costco warehouse.

"That’s due to the shipping and handling fees charged for delivery to your home or business. And when an item is available both online and in the warehouse, you’ll see the message, ‘Item may be available in your local warehouse for a lower, non-delivered price,’ on its product page on Costco.com.”

What isn't known is when this policy was published -- before or after Song's purchase or claim?

Did this happen to you?

As a result of what happened to her, Song is looking for others to join in on her class action lawsuit, and as the plaintiff, she seeks certification of the class action, damages, fees, costs, and a jury trial for violations of state consumer laws.

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