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Republican AGs Say Costco Faces Legal Risks Over ‘Divisive’ DEI Policies

A coalition of more than a dozen Republican attorneys general warned Costco on Monday that its embrace of diversity, equity, and inclusion (DEI) policies may expose it to legal risks in light of the Supreme Court’s decision to strike down affirmative action. 

Led by Iowa Attorney General Brenna Bird and Kansas Attorney General Kris Kobach, the group wrote in a letter to CEO Ron Vachris that the company should ditch any DEI policy and adopt a merit-based approach. Last week, Costco shareholders overwhelmingly shot down an effort to pass an anti-DEI measure. 

“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 Republican officials wrote. “Costco should treat every person equally and based on their merit, rather than based on divisive and…

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