MccPhreak said:The way I see it, I think Costco should give the consumer 2 options in this situation:

1) renew from when the previous year expired and allow the customer to keep their previous purchases on record for returns. The fees for the first three months were to keep your purchase history on record.

2) renew from when the customer reapplies and wipe out their previous purchase history, denying them of any return of items purchased during this previous membership period. Essentially treat them like the new customer they wanted to be treated as.

Costco has a simple return policy that is oriented to serving its members, a simple membership agreement, and it sets high ethical standards which support both its customers and employees which it expects over the long run will provide a fair return to its shareholders. Why do you want to change that? If your model fits other customers, perhaps you and others should build that business and compete.

MccPhreak said:horizon6 said:MccPhreak said:The way I see it, I think Costco should give the consumer 2 options in this situation:

1) renew from when the previous year expired and allow the customer to keep their previous purchases on record for returns. The fees for the first three months were to keep your purchase history on record.

2) renew from when the customer reapplies and wipe out their previous purchase history, denying them of any return of items purchased during this previous membership period. Essentially treat them like the new customer they wanted to be treated as.

Costco has a simple return policy that is oriented to serving its members, a simple membership agreement, and it sets high ethical standards which support both its customers and employees which it expects over the long run will provide a fair return to its shareholders. Why do you want to change that? If your model fits other customers, perhaps you and others should build that business and compete.

What in the world are you talking about? Where did I say I'm trying to change Costco's business model? Do you even bother reading people's posts before responding? Even if for some reason I did want to change Costco's business model, as a member and shareholder, I have every right to suggest to them whatever changes I want to be made.

Most times I do read the post before responding; sometimes they're not worth reading

Yes, you have every right to make suggestions, even if you were not a member or shareholder.

Please don't take offense, but I did read your post and it appeared to suggest changing the 'return policy' so you that you return items purchased only during a continuous membership; seems to complicate things and not consistent with a fair policy they have now ... which is basically simple, satisfaction guaranteed. Perhaps, and please don't take offense, you may want to re-read your post.

Costco works. There is room for change in improvement in everything and Costco is constantly changing. Sometimes when they make a change it doesn't work and they change again.

This post was about a class action lawsuit that appears to be based on someone's being able to claim dissatisfaction with a clearly stated membership policy and rather than that person simply asking for a refund for the small amount involved, lawyers turned it into a situation where they got 'a bundle'.

While there are certainly circumstances that warrant class action legal actions, this one reminds me on the one where some complained that a hard drive did not contain exactly 80gb, but some un-rounded number very close thereto, and the consumers got a 'free' piece of software that many didn't want or need, while the lawyers got real money.

Sorry, bite the hand that bites yours, there are enough vultures in the world of commerce; don't bite the hand that feeds you

This all reminds me of something I've wondered, as I buy my tires at Costco and take advantage of their free rotation, etc. Do you lose your hazard warranty, tire service, etc., when you let the membership lapse even for a day?

Costco will find a way to make up for the margin they were receiving from the membership...

Interesting thread discussion. Although, I have not heard anyone mentioned addressing the issue of someone losing their CashBack rebate if they cancel their membership prior to expiration date. Another class action lawsuit, perhaps?

I love CostCo and therefor I hate Rhonda Dupler.

above said:Millions in legal fees and higher prices for all consumers: check.
A few bucks worth of membership extensions to some consumers: check.
No legal precedent or admission of wrongdoing: check.

Well i seriously doubt that will happen. Probably the only people who are getting screwed is the shareholders. I am unaware of the exact way they do business but do they not make a profit off of the merchandise too or is it just the memberships?

I don't think it will mean higher prices for all ... if they did that more would just go to sams club. This settlement will not be reflected in the prices at all.

I don’t believe what Costco does is unfair. If you get charged your annual fee by a credit card company and don’t use it for three months are you going to call them and ask them to waive part of the fee? Chances are, most of these members shopped after their cards were expired and were allowed by a supervisor or manger to shop anyway, without renewing. Is that fair to the members who renew on time? Several people wrote that Costco is more consumer friendly. Maybe it’s members should be business friendly. If it weren’t for the money generated by the membership fees, Costco would not be able to offer such low prices.

The bottom line is...if my card expires, and 6 months later, i decide to become a member again, i am forced to pay for an annual membership that will last only 6 months - nothing pro-rated, and no refund option. Costco did this to me twice, and i now refuse to ever go there again. It's about time this suit came about!

Costco tried to do this to me last August 2008. I pretty much stopped using Costco, and my membership had expired in December 2007. In August 2008 there were a few items I needed from Costco and decided to give them another shot. When I renewed my membership at the register, for the $50 annual price, I made it a point to verify the cost would change my expiration date to August 2009. I was told it would NOT and it would again expire in December 2008. I argued with the cashier who couldn't comprehend what I was disputing. I told her I let the card expire because I no longer used Costco and she said it made no difference. She expected me to pay $50 just to pay another $50 in 4 months, which coincided with the December expiration. She went on to say something ignorant claiming I was still a member with an expired membership. I told her she was wrong, and she became a wise a$$ stating I was wrong. When I told her I'd straighten it out and the customer service desk, she laughed and said they'd tell me the same thing.

Long story short (if it's not too late), I explained the situation to the customer service rep and she immediately fixed the issue and adjusted my new expiration date to August 2009. Since the cashier was much more arrogant and snotty than I've bothered explaining here, I went back to her and made sure I let her know just how wrong she was, which is also what the customer service rep stated. All of a sudden she wasn't laughing and was stumbling over her words like a fool.

Now, I'm sure Costco as a whole is responsible for this idiotic and ignorant practice, but I was lucky enough to find a customer service rep who had an ounce of common sense. At the time, I just assumed mine was an isolated incident, brought on by a cashier with sub par intellect. It's outrageous to learn that Costco has been doing this to members as a normal practice. I wonder how many didn't notice or just accepted it, without arguing the point, as I did. Shame on them for their flagrant disregard for customer service, as well as simple honesty.

Costco has really sunk to the bottom of the barrel since they first opened. Their prices are no longer cheaper than the retailer's prices, and in many cases they're more expensive. So I'm at a loss as to what warrants a membership fee, just to pay the same, or more, for the same items you can find cheaper elsewhere. Granted, there are some items that come and go from time to time that are really good buys, but not enough to justify the member fees. I won't be renewing this August.