Costco Pays $2M Settlement in False Advertising Lawsuit, And You May Be Eligible for a Payout

Costco customers have only a few weeks to respond to apply for a share of a $2 million settlement from the wholesale giant.

The class action lawsuit involved those who bought Kirkland Signature Moist Flushable Wipes between July 1, 2011, and May 31, 2017, according to Top Class Actions.

“Despite claims Kirkland wipes were flushable, the plaintiffs claim flushing them caused damage to pipes, septic systems, sewage lines and other plumbing. Consumers argue they would not have purchased the wipes if they knew they were not truly flushable as advertised,” the firm reported.

Costco agreed to the $2 million settlement but did not admit wrongdoing in the settlement.

The agreement will allow customers to collect $1.30 “per purchased product,” with a minimum payment of $7.50 and maximum of up to 43 products for a maximum payment of $55.90.

Proof of purchase is not required to receive a payment, the law firm said.

The case is officially known as “Kurtz v. Kimberly-Clark Corporation, et al., Case No. 1:14-cv-01142-PKC-RML, in the U.S. District Court for the Eastern District of New York.”

To be included among the participants in the lawsuit, forms must be submitted by Aug. 9.

Online claim forms can be accessed here.

A final approval hearing for the settlement will be held Aug. 30.

At least one maintenance worker, Alexander Kraus of Kenosha Water Utility, told Fox Business that “flushable” wipes are commonly encountered in sewers, where they can cause big problems.

“They cling onto any small deposits or points where tree roots make their way into the sewer laterals,” he said.

“It’s just a matter of time before a backup occurs, especially from apartment complexes.”

Kraus said workers are sometimes able to clear backups caused by wipes by flushing the sewer pipe, which takes about an hour.

Often, he said, that is just a”stop gap” measure until the next clog, “and we’re out to do it all over again.”

Eventually, he said, the sewer lateral needs to be dug up and replaced.

Costco did not respond to a request for comment by Fox Business, but the settlement website quoted them as saying, “Costco denies this allegation and maintains that the Product performs as advertised.”

Fox reported the company continues to sell the wipes.

“Photographs of the product on its website show packaging that states, ‘Never flush more than one wipe at a time,’” the outlet reported.