A California woman has filed a class-action lawsuit against Costco, claiming the company misled customers by advertising “free shipping” online while quietly embedding shipping costs into product prices.
The lawsuit, filed Tuesday in U.S. District Court for the Western District of Washington, alleges that Costco advertised shipping charges as “$0.00” on certain online purchases, when in fact the cost of shipping was bundled into the listed product price.
Plaintiff Christina Zaimi says she paid $250 more for a couch on Costco.com than she would have paid in-store, despite a promise of free delivery.
“Costco represents that consumers are paying $0.00 for shipping,” the lawsuit states. “In reality, Costco inflates the price of the product itself to include shipping costs.”
The suit claims Costco’s online pricing model violated state and federal consumer protection laws, breached contracts and warranties, and misled customers through false advertising.
Zaimi alleges she purchased a sectional sofa on Dec. 30, 2024, for $2,349.99 based on Costco’s online promise of free shipping.
A nearly identical couch, she claims, was available in-store for $2,099.99 — a $250 difference.
The lawsuit notes that shipping and handling were listed as “$0.00” during checkout, even though the product’s higher price allegedly included delivery costs.
Costco, headquartered in Issaquah, does acknowledge in a customer service webpage that online prices “take into account shipping and handling fees not applicable to warehouse purchases.”
But the complaint argues this disclaimer is buried and not visible during the online checkout process, which instead presents the shipping cost as free.
The complaint claims this tactic misleads reasonable consumers into believing the online price is equivalent to the in-store price, with no added delivery cost — when that’s not the case.
The lawsuit states that Zaimi would not have made the online purchase if she had known the product was more expensive due to hidden shipping costs.
She is seeking restitution, an injunction to stop the alleged practice, and damages on behalf of all affected customers.
“Consumers are more likely to make purchases — and to pay a price premium — when they believe they are receiving free shipping,” the complaint says.
The suit includes nine claims for relief, including breach of contract, unjust enrichment, and violations of California and Washington consumer protection laws.
It also seeks class certification, alleging that potentially thousands of consumers nationwide were similarly misled.
A jury trial has been requested.
Costco has not yet responded publicly to the complaint.
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