I received this message from Costco this evening; just thought I'd pass along the info...
CLASS ACTION SETTLEMENT NOTICE
TO: All persons who, from March 1, 2001 through March 31, 2009, purchased and paid for a new 12-month term of Costco membership, including Gold Star (individual), Business, and Executive memberships, after the expiration of their prior annual Coscto memberships.
YOU ARE HEREBY NOTIFIED that a proposed class action settlement has been preliminarily approved by the court in Rhonda Dupler v. Costco Wholesale Corporation, No. 06-CV-03141 (JFB) (ETB) (United States District Court, Eastern District of New York). The lawsuit challenges Costco’s practice of deeming the 12-month term of memberships that are renewed after their expiration as having commenced on the expiration date, rather than on the date they are renewed. The lawsuit alleges that this practice is unlawful and deprives Costco members of a portion of the membership period for which they paid a renewal fee. Costco denies all claims and liability stated in the lawsuit.
If, at any time between March 1, 2001 and March 31, 2009, you renewed your Costco membership after the passage of its expiration date, your rights may be affected by the settlement of this lawsuit. For further information regarding the settlement and your rights, including information on how to exclude yourself from the Settlement Class or object to the terms of the settlement agreement, please visit the website http://www.costco.com/renewalsettlement.pdf. If you would like to receive a printed copy of the settlement information available on the website, please send a written request for these materials to REQUEST FOR NOTICE, P.O. Box 34682, Seattle, WA 98124 in sufficient time to be received by June 12, 2009.
PLEASE DO NOT CONTACT THE COURT OR THE CLERK’S OFFICE.
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It's about time somebody filed a lawsuit against Costco for their unfair membership renewal practice. This happened to me two years ago when I renewed my membership 5 months after the expiration date. Luckily I don't give up that easily. I kept calling corporate to complain and finally got a supervisor who let me start my renewal date on the month when I actually paid. Otherwise, I would have ended up paying for a year's membership that I only got to use for 7 months. My salute goes out to Rhonda Dupler!!!
Just got the email. Settlement sucks as I probably paid for an extra membership or 2 over the years with their policy. I finally canceled my membership and use my roommates card.
You let your card expire, 'renew' after that date, and Costco restores your long-time member status. So if you joined 5 years ago, their system will show you as a 5 year member still.
Is there some kind of grace period where you can shop on an expired card with a warning that we don't know about that will now be killed off?
It sounds like people would at least like the option to dock the missed months in order to be listed as a long time member, if that actually has any weight to it. Otherwise, you're going to be forced to reapply just like a brand new member. On the bright side, you won't have cashiers hounding you to get business memberships!
What are the perks of being a long time member to Costco? At the moment, I can't think of any. It's all about getting the "new" customers, not rewarding the loyal ones. Banks, cellphone, and credit card companies do it everyday.
It's a hassle to some to keep re-applying but the new members also seem to get the perks (free pizza, gift cards, sign up coupons, etc.)
Probably a hassle to them to have to issue new cards and account numbers but if they are playing games, I will play too.
Sorry, this one sounds like it would be a victory basically for some lawyer.
How many have been denied a refund of a request for their membership fee if they were unsatisfied? Should memberships be sold only for the days they someone shops?
There are plenty of companies that display poor business practices. We'd be better off if more companies followed the high standards Costco sets.
To borrow there phrase, Costco is a company with 'a code of ethics that gives members, employees and suppliers priority before shareholders but has resulted in shareholder gains year after year'.
horizon6 said:Sorry, this one sounds like it would be a victory basically for some lawyer.
How many have been denied a refund of a request for their membership fee if they were unsatisfied? Should memberships be sold only for the days they someone shops?
There are plenty of companies that display poor business practices. We'd be better off if more companies followed the high standards Costco sets.
To borrow there phrase, Costco is a company with 'a code of ethics that gives members, employees and suppliers priority before shareholders but has resulted in shareholder gains year after year'.
They blew the "code of ethics" part into orbit when cheating customers out of a full year membership. There is something wrong with the logic of "We'll back charge you for the time you did not shop with us". This suit is a no-brainer.
thekid72 said:horizon6 said:Sorry, this one sounds like it would be a victory basically for some lawyer.
How many have been denied a refund of a request for their membership fee if they were unsatisfied? Should memberships be sold only for the days they someone shops?
There are plenty of companies that display poor business practices. We'd be better off if more companies followed the high standards Costco sets.
To borrow there phrase, Costco is a company with 'a code of ethics that gives members, employees and suppliers priority before shareholders but has resulted in shareholder gains year after year'.
They blew the "code of ethics" part into orbit when cheating customers out of a full year membership. There is something wrong with the logic of "We'll back charge you for the time you did not shop with us". This suit is a no-brainer.
Sorry, but I disagree. Was the person denied a refund of their membership fee by Costco? Should someone be a member only on the days they shop there? If you subscribe to a magazine for a year do you pay only for the issues you read? Most 'stores' do not work on the membership concept. Costco, and a few others stores use the membership concept. Each individual's choice whether to join and shop at those stores. I've told Costco on the rare occasion when they've fallen short of their goals, and observe the regular efforts at improvement. Would you like to identify stores that are consistently better or would you like to identify how much the lawyers got paid for handling this situation? Well, in a sense, you're right, that suit was a 'no-brainer'.
bopc1996 said:Costco screwed me also. I complained but got no where. Would you mind saying what they did to you, what you asked for and what they refused? Did you cancel your membership and request a refund?
horizon6 said:thekid72 said:horizon6 said:Sorry, this one sounds like it would be a victory basically for some lawyer.
How many have been denied a refund of a request for their membership fee if they were unsatisfied? Should memberships be sold only for the days they someone shops?
There are plenty of companies that display poor business practices. We'd be better off if more companies followed the high standards Costco sets.
To borrow there phrase, Costco is a company with 'a code of ethics that gives members, employees and suppliers priority before shareholders but has resulted in shareholder gains year after year'.
They blew the "code of ethics" part into orbit when cheating customers out of a full year membership. There is something wrong with the logic of "We'll back charge you for the time you did not shop with us". This suit is a no-brainer.
Sorry, but I disagree. Was the person denied a refund of their membership fee by Costco? Should someone be a member only on the days they shop there? If you subscribe to a magazine for a year do you pay only for the issues you read? Most 'stores' do not work on the membership concept. Costco, and a few others stores use the membership concept. Each individual's choice whether to join and shop at those stores. I've told Costco on the rare occasion when they've fallen short of their goals, and observe the regular efforts at improvement. Would you like to identify stores that are consistently better or would you like to identify how much the lawyers got paid for handling this situation? Well, in a sense, you're right, that suit was a 'no-brainer'.
To use your example of a magazine subscription....
If your subscription runs out, and you renew 5 months later, only to receive 7 more issues for the 12 month price - is that fair? How you can possibly side with Costco on this baffles me.
thekid72 said:horizon6 said:thekid72 said:horizon6 said:Sorry, this one sounds like it would be a victory basically for some lawyer.
How many have been denied a refund of a request for their membership fee if they were unsatisfied? Should memberships be sold only for the days they someone shops?
There are plenty of companies that display poor business practices. We'd be better off if more companies followed the high standards Costco sets.
To borrow there phrase, Costco is a company with 'a code of ethics that gives members, employees and suppliers priority before shareholders but has resulted in shareholder gains year after year'.
They blew the "code of ethics" part into orbit when cheating customers out of a full year membership. There is something wrong with the logic of "We'll back charge you for the time you did not shop with us". This suit is a no-brainer.
Sorry, but I disagree. Was the person denied a refund of their membership fee by Costco? Should someone be a member only on the days they shop there? If you subscribe to a magazine for a year do you pay only for the issues you read? Most 'stores' do not work on the membership concept. Costco, and a few others stores use the membership concept. Each individual's choice whether to join and shop at those stores. I've told Costco on the rare occasion when they've fallen short of their goals, and observe the regular efforts at improvement. Would you like to identify stores that are consistently better or would you like to identify how much the lawyers got paid for handling this situation? Well, in a sense, you're right, that suit was a 'no-brainer'.
To use your example of a magazine subscription....
If your subscription runs out, and you renew 5 months later, only to receive 7 more issues for the 12 month price - is that fair? How you can possibly side with Costco on this baffles me.
I'll agree, not a perfect example, but does not change the point. Did the person cancel their membership or simply not pay the renewal and was the person able to renew anytime they wanted? Will the magazine restart your subscription immediately or make you wait some weeks?
Let's be real ... Costco does not to make a profit; when someone doesn't pay a membership fee its effectively split among the other members or the store closes. Realistically, no business can operate continuously at a loss and make it up on volume and continue in business.
Would you like to suggest some stores that you think are better ... I'd be interested.
Or would you like to see what the settlement provides for the lawyers ... you might be interested.
horizon6 said:bopc1996 said:Costco screwed me also. I complained but got no where. Would you mind saying what they did to you, what you asked for and what they refused? Did you cancel your membership and request a refund?
Nope. My membership expired in july 07; I did not use Costco again until oct 07 and i applied for membership again. costco said my expitation date of new card would be july09 not oct 09 but still charged full amount for card. As I understand the class action suit this was not legal.
horizon6 said:taf said:I wonder if Costco still thinks the possible bad publicity and loss to reputation from this mess is worth the extra money they collected?
They were quite crowded when I was in there today. But, I assume FWs are not buying the Godiva gift cards to protest how they've been treated
BTW, this was a settlement, not a victory, except perhaps the legal fees.Costco agrees to pay up to 5 million in legal fees and they will pass that cost along to their customers. The renewal policy was a business decision and the settlment without admiting wrong doing was also a business decision. I think the renewal policy was like a hidden fee, but Costco will not admit that. As usual, read the fine print and at least you will not be suprised by what things really cost, if you can understand what the fine print is saying. A law degree may be helpful.
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