Costco faces federal lawsuit accusing retailer of selling products linked to child and forced labor

Costco is facing a new federal lawsuit in Oregon accusing the retailer of selling hundreds of products linked to child and forced labor.

According to The Oregonian, the lawsuit alleged that products including chocolate, cashews, and shrimp are sourced from exploited workers. According to the lawsuit, the chocolate was illegally farmed by children in West Africa, the cashews were harvested by underage and forced laborers in Brazil, Vietnam, and Guinea-Bissau, and the shrimp was processed by exploited workers in India.

“The economics are straightforward: Producers that use child and forced labor can reduce their costs,” the 95-page lawsuit stated, according to The Oregonian. “Polling shows that Americans overwhelmingly prefer not to buy products they know are tainted by child labor and are willing to pay a premium for products they trust to be ethically sourced.”

The suit seeks class-action status and $200 for each eligible Oregon Costco member. Additionally, the lawsuit asks a judge to stop Costco from continuing its “unlawful” business practices.

“To capitalize on this demand, defendant Costco Wholesale Corporation brands itself as a retailer of ‘ethically sourced’ and ‘sustainable’ products and makes broad, categorical promises to shoppers about its ability to prohibit child and forced labor in the supply chains behind the products it sells,” the lawsuit read.

Costco has not yet responded to the allegations.

Costco receives $184M in tariff refunds, plans to pass savings to shoppers

Last week, Costco said it received $184 million in tariff refunds from the federal government, with more expected.

According to The Seattle Times, the Issaquah-based retailer said it’s putting the refunds toward lower prices on everyday products and nonfood items.

Costco reported nearly $96 billion in fourth-quarter revenue, up 11% from a year ago. Net income rose 15%.

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