Costco sues state over $3 million in unclaimed customer rebates By VANESSA HO SEATTLEPI.COM STAFF
When customers fail to cash in on rebates, where does the money go?
That's the subject of a lawsuit filed by Costco last week, alleging that it shouldn't have to pay Washington $3.2 million in unclaimed rebates.
The complaint followed a state order last month directing the Issaquah wholesaler to pay the unclaimed money to the state Department of Revenue.
The order said the funds belong in a state-managed program for consumers who want to claim the rebates.
Costco paid the money, but said it shouldn't be on the hook. In a complaint filed in King County Superior Court on Friday, the company said it uses third-party companies to handle its rebate programs, and that it doesn't keep the money.
Costco also complained about how it got the bad news. It said the state had sent a bill with less than 30 days to pay up, with a "terse" statement that included a threat of monetary fines and prison, and no opportunity for appeal.
The $3.2 million represents unclaimed Costco rebates from 2004 to 2010, plus interest.
Visit seattlepi.com's home page for more Seattle news.
AssetLocationandRecoveryServices.us
1-888-398-5703
Comments(0)