Costco’s Risk-Free Guarantee on Memberships

In 2018, a class-action lawsuit was filed against Costco for allegedly misleadingly offering a Risk-Free 100% Satisfaction Guarantee on memberships that promises a full refund of all membership fees to members who cancel their memberships when, according to plaintiffs, the amount of the refund for executive members is reduced by the amount that those members earn as part of their 2% reward program. (Pearlstone et al v. Costco Wholesale Corp., Case No. 18-cv-630, E. D. MO.)

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