Skip to content

Costco Sued for Allegedly Spying on Its Online Customers

The lawsuit claims the chain doesn't ask permission before monitoring your data.

Costco has been using recording software to monitor customers' interactions on its website, violating the Florida Security Communications Act, according to a new lawsuit filed recently in Palm Beach County Circuit Court.

The document states that Jason Goldstein, identified as the plaintiff, visited five times while in Florida within the last year. During these visits, he argues in the lawsuit that Costco "utilized tracking, recording and/or 'session replay' software to contemporaneously intercept" his "mouse clicks and movements, information inputted" as well as his location, time and date, and "pages and content viewed," according to Boca News Now. (Related: Grocery Shortages To Expect in 2021, According to Experts.)

The Costco lawsuit claims this violates the Florida Security Communications Act by unlawfully gathering data about web use. The court will decide if it applies to a public retail site. Goldstein says Costco did not disclose their monitoring and didn't ask him if they could do so, causing an invasion of privacy and access to private information. Eat This, Not That! has reached out to Costco for a comment on the case.

This isn't the only grocery store to be hit with a lawsuit recently—Whole Foods is facing a court case against its Organic Honey Graham Crackers. It says the chain mislabeled the snack by implying it's made with honey and whole wheat flour when the ingredients are actually enriched white flour and sugar.

To get all the latest Costco and grocery store news delivered right to your email inbox every day, sign up for our newsletter!

Amanda McDonald
Amanda is a staff writer for Eat This, Not That!. Read more
Filed Under