Costco Settlement

This page finalized August 1, 2006.

COSTCO SETTLEMENT

During an investigation earlier this year, Mobile Source Enforcement Section (MSES) staff determined that approximately 900 non-California certified Toro mowers (Model 20023) were purchased by Costco through Citgo, a small distributor in Chicago. Toro sold the mowers to Citgo with the understanding that they would be sold outside of the United States. Costco distributed about 240 of these mowers to stores in California and 90 were sold to California residents prior to our enforcement action.
A follow-up of Citgo revealed that it is a one-person company operated out of a residence and all inquiries to the owner were unsuccessful. Although it appears that Costco was not aware of the nature in which Citgo obtained the mowers, and Costco had a vendor agreement that included a clause that the products would be legal for sale in California, they are ultimately responsible for introducing the products into California. After discussions and a meeting with Costco's counsel, the case has been settled for $25,000. This penalty, upon receipt by the Air Resources Board, will be placed into the "Air Pollution Control Fund." The agreement also includes provisions that Costco will provide training to their staff to minimize the chance of future violations.


Case Settlements

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