Costco membership renewal fewer than 12 months long: Naughty Business of the Week
Costco has reached a settlement agreement with consumers who were short-changed on their membership renewals, with agreements that expired fewer than 12 months from the re-up date, according to Consumer Reports.
Basically, consumers would come in to the warehouse retailer months after their memberships had lapsed and sign up for another year. But the company would back-date the new agreement to when the original membership ended, so consumers who didn't spot the error would pay for a full annual membership that would expire in fewer than 12 months.
It's like paying to resume a subscription to a magazine and only getting 8 or 10 issues!
Under the terms of the Costco settlement agreement ...
... folks who renewed a Costco membership between May 2001 and May 2009 that expired in fewer than 12 months would receive anywhere from one to four months' free membership. Eligible members, both former and current, will receive a postcard in the mail.
Costco has also changed its policy, and if you renew more than two months after your old membership expired, your expiration date will be a year from the date you make the agreement.
This still seems shady to me.
I could see, perhaps, renewals lasting fewer than 12 months being reasonable if there was some incentive to restart right away, i.e. if renewing members paid a smaller annual fee than those who were starting afresh. However, that's not the case -- you pay the same for 12 months of membership whether or not your data is in their system already.
(photo: Paul Sakuma/Associated Press)
Categories: Cheap/Frugal, Food, Naughty businesses/NBotW, Shopping
Comments
THIS IS A GREAT ARTICLE AND CONSUMERS SHOULD BEWARE OF THIS SCAM.
COSTCO SHOULD MAKE GOOD TO ALL MEMBERS THEY HAVE APPLIED THIS PRACTICE TO.
RENEWAL MEMBERSHIPS SHOULD SHOW THE RENEWAL DATE TO AVOID ANY FURTHER CONFLICT.
I HAVE RECEIVED 3 POST CARDS RELATED TO THIS SUIT. I HOPE MY CASE IS REVIEWED AS WELL AS ALL INVOLVED WITH THIS ISSUE.
Posted by: EDMUND MEYER | July 16, 2009 11:20 AM
Costco is still up to there old tricks.My memership expired 9/08 and I renewed my membership 2/09.I was just billed for a 9/09 renewal membership (note more then 6 months still left from 2/9 renewal)I called costco customer service and was told it was a error in billing ...
BEWARE
Posted by: jhope | July 23, 2009 12:52 PM