Costco Lawsuit Filed in Washington Over Alleged Failure to Provide Presale iPhone Disclosures

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A proposed class action lawsuit alleges Costco Wholesale Corporation illegally sells iPhones in Washington without providing certain repair and warranty disclosures about the products.

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The 15-page lawsuit accuses Costco of violating Washington’s Telephone Buyers’ Protection Act (TBPA), which requires telephone equipment sellers to clearly disclose certain information about their product prior to the point of sale, including the party responsible for repairs, standard repair charges and the terms of any written warranties.

According to the case, Costco fails to properly disclose this information to online and in-store iPhone buyers.

“Each of the iPhones sold by Costco are substantially similar in that the packaging does not disclose information that is required under the TBPA,” the suit charges. “Costco also does not clearly disclose the above information required by the TBPA by posting notice in its stores or on the Product page on its website.”

Enacted in 1984, the TBPA aims to ensure that consumers shopping for telephone equipment receive adequate information about the products’ capabilities and reliability, the complaint shares.

Per the filing, Costco’s alleged failure to include presale disclosures about the iPhones it sells is misleading to consumers, who may be surprised with high repair charges or unexpected warranty terms.

The Costco lawsuit was brought by a Washington resident who says he bought an iPhone 14 Pro Max from the warehouse retailer in 2023. The plaintiff claims he would have paid less for the phone—or not bought it at all—had Costco clearly disclosed its standard repair charges and warranty information in compliance with the TBPA.

The lawsuit looks to represent all individuals who purchased an iPhone from Costco for personal use in Washington during the applicable statute of limitations period.

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