People who bought or renewed a Costco membership in Oregon may be covered by a proposed class action alleging Costco sells memberships on promises that it prohibits child and forced labor and controls Kirkland Signature supply chains, while stocking chocolate, cashews, shrimp and other goods linked to exploited labor. No class has been certified and there is nothing to file yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Costco Wholesale Corporation has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is the Costco Child Labor Lawsuit?
A proposed class action filed on October 1, 2026, in the U.S. District Court for the District of Oregon accuses Costco of misleading members about how it sources the products on its shelves. The case is Brunker v. Costco Wholesale Corporation, No. 3:26-cv-02035, brought by two Portland-area Costco members against Costco Wholesale Corporation, which is based in Issaquah, Washington.The 95-page complaint alleges that Costco tells members its suppliers may not use illegal child labor, that suppliers must disclose every production facility, and that Costco “controls every element” of how Kirkland Signature products are made, while it actually sells chocolate, cashews, shrimp and other goods from supply chains with well-documented child and forced labor problems. The plaintiffs bring the case under Oregon’s Unlawful Trade Practices Act and seek $200 for each eligible Oregon member. They demand a jury trial. No court has ruled on any of the allegations, and Costco has not yet responded.
Free settlement alerts
Get notified when new class actions open to claims
Join thousands of readers who get the latest class action settlements you may qualify for — delivered straight to your inbox.
What Costco Promises Members, According to the Complaint
The lawsuit quotes Costco’s own materials at length. It says Costco tells members that suppliers are prohibited from using “illegal child labor,” must disclose each production facility for Costco’s consent and approval, and are audited and sanctioned for violations. It opens by quoting Costco’s mission statement: “Our members have extended a trust to Costco by virtue of paying a fee to shop with us.”The complaint says Costco makes its strongest claims about Kirkland Signature, its house brand. It alleges Costco advertises that by “controlling every element” of each item’s creation, it has “direct insight into the entire supply chain,” including labor conditions. The plaintiffs argue that is not possible, because Costco does not manufacture most Kirkland Signature groceries and, they allege, has kept its Kirkland suppliers confidential in past litigation by claiming trade-secret protection.
The Products the Lawsuit Points To
The complaint relies on news investigations, government reports and nonprofit research to describe labor problems in the supply chains behind several product categories:- Chocolate: cocoa from West Africa, where the complaint describes child labor on cocoa farms as a long-documented problem.
- Cashews: the complaint says Kirkland Signature cashews come mainly from a supplier that sources from more than a dozen countries, and that cashews from Brazil, Vietnam and Guinea appear on the U.S. Labor Department’s list of goods produced with child labor.
- Shrimp and seafood: Kirkland Signature frozen shrimp sourced from India, which the complaint ties to 2024 reporting by CNN, the Associated Press and the Corporate Accountability Lab on abuses in Indian shrimp processing.
- Kirkland Signature dog food and milk: the complaint alleges these are private-labeled versions of products from Diamond Pet Foods and, in the Pacific Northwest, Darigold, and points to past reporting and enforcement involving their supply chains.
- Coffee and sugar: listed as “other at-risk products” whose suppliers and countries of origin, the complaint says, Costco does not disclose.
None of the suppliers or producers named in the complaint is a defendant, and the allegations about them have not been tested in this case.
Why the Case Is Built Around the Membership Fee
The plaintiffs are not suing over the price of a candy bar or a bag of shrimp. Their theory is that the membership is the product. The complaint alleges Costco promotes responsible sourcing and Kirkland Signature control as part of what members pay for, that this lets Costco charge more for memberships than competing warehouse clubs, and that members did not receive the membership Costco described.The complaint also makes an argument about why consumer law matters here: it cites the U.S. Supreme Court’s 2021 decision in Nestlé USA, Inc. v. Doe, which held that foreign child laborers could not bring their claims against U.S. companies in that case, and argues that buyers’ consumer-protection rights are one of the few remaining routes to accountability.
Who Is in the Proposed Class?
The complaint proposes a single Oregon class. It covers everyone who, during the class period, did any of the following:- Bought or renewed a Costco membership at a warehouse in Oregon
- Bought or renewed a membership online using an Oregon address
- Bought or renewed a membership and shopped at a warehouse in Oregon
- Bought or renewed a membership and shipped a product to an Oregon address
The class period runs from one year before the filing, which is October 1, 2025, to the date a class is certified. Costco, its affiliates, officers and directors and their immediate families are excluded. The complaint estimates the class at more than 1.1 million members. The definition is a proposal only; a judge would have to certify it before anyone is formally part of the case.
Legal Claims and What the Lawsuit Seeks
The complaint brings two claims:- Violation of Oregon’s Unlawful Trade Practices Act, ORS 646.638, alleging Costco misrepresented the characteristics, benefits and quality of its memberships and of the goods it sells
- Unjust enrichment, alleging Costco charged a membership price premium based on those representations
Oregon’s statute lets consumers recover actual damages or $200, whichever is greater, and the complaint argues that the $200 minimum can be applied per class member if the plaintiffs show Costco acted recklessly or knowingly. The lawsuit asks for class certification, an order stopping the challenged practices, restitution, statutory and punitive damages, disgorgement, interest, and attorneys’ fees and costs. Those are the plaintiffs’ requests, not amounts anyone has been awarded.
What Happens Next
Costco will respond to the complaint, and a motion to dismiss is common at this stage. If the case survives, the parties exchange evidence and the plaintiffs can ask the court to certify the Oregon class. The case could also settle at any stage.Oregon Costco members do not need to do anything now. There is no claim form, and nothing is required to stay within the proposed class. If the case settles or a class is certified, class members are normally notified and told how to file a claim or opt out. Costco also faces a separate proposed class action over membership auto-renewal notices in California.
Questions
Will Oregon Costco members get $200?
Not at this point. The $200 figure is the statutory damages amount the plaintiffs are asking for under Oregon’s Unlawful Trade Practices Act, which allows the greater of actual damages or $200. The case was filed on October 1, 2026, no class has been certified, Costco has not been found liable, and there is no settlement or claim form. Any payment would depend on the outcome of the case or the terms of a settlement.
Who is in the proposed Costco class?
The complaint proposes an Oregon class of everyone who, from one year before the October 1, 2026 filing until a class is certified, bought or renewed a Costco membership at an Oregon warehouse, bought or renewed one online with an Oregon address, bought or renewed one and shopped at an Oregon warehouse, or bought or renewed one and shipped a product to an Oregon address. Costco’s officers, directors and affiliates are excluded. The definition is a proposal only.
Is the lawsuit about the products or the membership?
The membership. The plaintiffs’ theory is that Costco promotes its responsible-sourcing standards and Kirkland Signature supply-chain control as benefits of membership, that those promises help Costco charge more for memberships, and that members did not get what was promised. The products, including chocolate, cashews, shrimp, milk and dog food, are the evidence the complaint offers that the promises were not kept.
Does the lawsuit name the companies that make Kirkland Signature products?
It alleges that Kirkland Signature dry dog food is made by Diamond Pet Foods and that Kirkland Signature milk sold in the Pacific Northwest comes from Darigold, and it points to past reporting and enforcement involving those supply chains. Those companies are not defendants, and the allegations about them have not been tested in this case. Costco is the only defendant.
What happens next in the Costco case?
Costco will respond to the complaint, possibly with a motion to dismiss. If the case survives, the parties exchange evidence and the plaintiffs can ask the court to certify the Oregon class. The case could also settle at any stage. Oregon Costco members do not need to do anything now.
Sources
• Class Action Allegation Complaint, Brunker v. Costco Wholesale Corporation, No. 3:26-cv-02035 (D. Or., filed October 1, 2026), Document 1: Costco class action complaint (PDF).• Brunker v. Costco Wholesale Corporation docket on CourtListener.
