Costco is facing a $2 million class action lawsuit over claims of false advertising related to its Kirkland Signature Moist Flushable Wipes.
The retail giant has agreed to settle, and eligible customers can claim cash without showing proof of purchase.
Costco Agrees to $2 Million Settlement in False Advertising Lawsuit
Costco has agreed to pay $2 million to settle a class action lawsuit over its Kirkland Signature Moist Flushable Wipes. According to a legal news website, the company has not admitted wrongdoing, as Fox Business revealed.
The lawsuit claims that the wipes caused damage to pipes, septic systems, sewage lines, and other plumbing. Plaintiffs argue that consumers would not have bought the wipes if they knew they were not truly flushable as advertised.
Alexander Kraus, a maintenance worker for Kenosha Water Utility, explained to FOX Business that he does not believe in "flushable" wipes due to the intact condition they are often found in sewers. He mentioned that these wipes cling to any small deposits or points where tree roots enter sewer laterals, eventually causing backups.
Kraus noted that most work clearing backups due to wipes can be done by flushing the pipe, which takes about an hour, but this is just a temporary fix until it clogs up again. In some cases, workers must dig up and repair the sewer lateral, a full eight-hour project.
Despite the settlement, Costco still sells flushable wipes with packaging advising, "Never flush more than one wipe at a time."
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Eligible Customers Can Claim Costco Settlement with No Proof Required
As part of a class action lawsuit, Costco has agreed to pay $2 million to customers who bought Kirkland Signature Moist Flushable Wipes between July 1, 2011, and May 31, 2017.
According to MSN, Class members can receive $1.30 per package of wipes purchased. The minimum payment is $7.50, while the maximum is $55.90, which covers up to 43 products. Shoppers must submit a claim form by August 9 to be eligible for payment. No proof of purchase is required.
Class members also have until August 9 to exclude themselves from or object to the settlement. The final approval hearing is set for August 30.
Other open settlements may also be available. Americans can receive payments up to $10,000 from a $6 million data breach settlement, with only one criterion to meet, The U.S. Sun reported.
Understanding Class Action Lawsuits
Class action lawsuits allow groups of people, or "classes," to join in court. These suits usually start with one or a few individuals who claim that a company or entity has harmed a large group of people.
The U.S. Sun explains that when a lawsuit becomes a class action, it includes all "class members" or people with similar complaints to those who filed the suit.
Companies often settle class actions by offering payments to class members, who usually give up their right to pursue further legal action in exchange for the money. These settlement agreements often include statements from the defendant denying any wrongdoing.
Companies typically choose to settle class actions to avoid the costs of continued litigation. Issues like pollution, discrimination, or false advertising can lead to class action lawsuits against companies.
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