19 state AGs pressure Costco to ditch DEI

The coalition specifically pointed to the Costco board recommending that shareholders vote against requiring a study on the financial risks linked to DEI.

Published: January 28, 2025 12:35pm

A coalition of 19 state attorneys general has urged Costco to end its diversity, equity, and inclusion (DEI) practices as major retailers scale back their own initiatives and the federal government moves to eliminate such programs in the public sector.

Led by Iowa AG Brenna Bird and Kansas AG Kris Kobach, the group included AGs from Alabama, Louisiana, Arkansas, Missouri, Georgia, Montana, Idaho, Nebraska, Kentucky, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and Virginia.

"Although Costco’s motto is 'do the right thing,' it appears that the company is doing the wrong thing—clinging to DEI policies
that courts and businesses have rejected as illegal," the group wrote to CEO Ron Vachris. "Costco should treat every person equally and based on their merit, rather than based on divisive and discriminatory DEI practices."

The coalition specifically pointed to the Costco board recommending that shareholders vote against requiring a study on the financial risks linked to DEI. They further highlighted a recent Supreme Court decision that found race-based criteria for college admissions to be unlawful and asserted that Costco had "inexplicably" clung to DEI practices.

The attorneys general did not threaten a lawsuit, but noted "Costco’s position runs contrary to the Supreme Court’s recent decisions and raises concerns about Costco’s compliance with State and federal laws." They further gave the company 30 days to notify them of its decision.

Other major retailers, such as Walmart and Target, have moved to scale down or eliminate their DEI practices in recent weeks.

"The tide has powerfully turned against DEI and other forms of woke activism by corporations that should've known better all along. As countless businesses finally wake up and wisely reject DEI, Costco must do the right thing and join them," Consumers' Research Executive Director Will Hild said in a statement provided to Just the News.

"Costco is on a senseless mission to insult and antagonize its customers nationwide. Its stubborn devotion to racist and outdated DEI practices not only hurts consumers, investors, and employees but also may be downright illegal," he added.

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