Costco makes false child labor promises, a new class action lawsuit alleges.

On Oct. 1, 2026, Costco members Leslie Brunker and Jeremy Parra filed a class action lawsuit against Costco Wholesale Corp. in the U.S. District Court for the District of Oregon.

The lawsuit alleges Costco sells memberships based on promises that it keeps child and forced labor out of its supply chains when it cannot trace or control many of the products it sells.

What Costco reportedly tells members

The complaint claims Costco's supplier code of conduct, sustainability report and membership brochures inform shoppers that the company prohibits illegal child labor, requires suppliers to trace every ingredient to its source and approves every production facility. It also alleges the company creates its Kirkland Signature items by "controlling every element" of their production.

A standard Costco membership costs $65 a year, 8% more than comparable plans at Sam's Club and BJ's Wholesale, according to the lawsuit. The plaintiffs tie that premium to the sourcing promises.

The allegations

The filing alleges Costco sells name-brand products under the Kirkland label and keeps those suppliers secret, hiding their labor problems from members.

Citing recall records, the plaintiffs claim Diamond Pet Foods makes Kirkland dog food. In 2024, the U.S. Department of Labor reportedly found children as young as age 14 working at poultry processors that allegedly supplied chicken for Diamond's dog food.

Additionally, the lawsuit claims Kirkland milk sold in the Pacific Northwest comes from Darigold and a late 2023 New York Times investigation found underage migrant labor on farms that supply its milk.

The complaint raises similar concerns about Kirkland frozen shrimp, alleging it comes from India, where a March 2024 report documented forced and child labor in shrimp processing.

The legal claims

The lawsuit brings two claims:


  • Oregon Unlawful Trade Practices Act, a consumer protection law that bars companies from misrepresenting the source, qualities or standard of the goods and services they sell

  • Unjust enrichment, a legal theory that applies when a company keeps money it gained unfairly

The plaintiffs claim the sourcing promises allowed the company to charge more for memberships that lacked the standards it advertised. They seek $200 in statutory damages per class member, punitive damages, refunds and a court order barring the company from continuing the alleged practices.

What the lawsuit means for Costco members

The proposed class covers anyone who bought or renewed a Costco membership since Oct. 1, 2025, at an Oregon warehouse or with an Oregon address, or who used it to shop in Oregon or ship products there.

As of this writing, there is no settlement, no claims process and no money available.