Attorneys general from 19 states are urging Costco to eliminate any "unlawful discrimination" tied to diversity, equity, and inclusion (DEI) policies. Their demand aligns with President Donald Trump’s recent executive order banning DEI in federal agencies and advising private sectors to follow suit.
"Racial discrimination is both immoral and illegal," Kansas Attorney General Kris Kobach told Fox News Digital. "Race-based employment hiring violates state and federal law, and as the chief law enforcement officer of Kansas, I intend to enforce the law vigorously."
Trump's order, signed in his first week back in office, tasks attorneys general with targeting sectors accused of discriminatory DEI practices. They’re expected to recommend lawsuits against violators to enforce compliance with civil rights laws.
The order also pushes private companies to end what it calls "discriminatory" practices. Public companies, large nonprofits, foundations, bar and medical associations, and universities with big endowments are under scrutiny for DEI policies.
Meanwhile, Trump dissolved DEI programs within the federal government. Some major corporations, including Target and McDonald's, have stepped back from DEI policies. However, Costco shareholders recently rejected an anti-DEI proposal that sought a report on the risks associated with such policies.
Costco’s board defended its stance, calling its commitment to respect and inclusion "appropriate and necessary." They argued that the requested report wouldn’t add meaningful information, according to reports.
"It’s time to ditch DEI," Iowa Attorney General Brenna Bird told Fox News Digital. "While other companies abandon their illegal, woke policies, Costco has doubled down. I’m putting Costco on notice to do the right thing and eliminate discriminatory DEI."
In response, Rev. Al Sharpton led a "buy-in" at a Harlem Costco to support the company’s DEI policies. He and 100 members of his National Action Network shopped there on Sunday to show solidarity.
A letter sent to Costco CEO Ron Vachris by the attorneys general emphasized the importance of race-neutral practices. "Now, the federal government is also focusing on ensuring invidious race-based discrimination no longer finds a home in woke corporations," it read.
The attorneys general demanded a response within 30 days. Costco must either confirm it has repealed its DEI policies or explain why it hasn’t, they said.
Attorneys general from states including Alabama, Arkansas, Georgia, Ohio, Texas, and Virginia also signed the letter. They are unified in their push for Costco to comply with federal and state civil rights laws.