Republican Attorneys General Challenge Costco's DEI Policies

Nineteen Republican attorneys general are urging Costco to abandon its diversity, equity, and inclusion (DEI) policies due to concerns over discrimination and legal risks. This push follows nearly unanimous shareholder opposition to a proposal for a risk report on DEI initiatives amid growing scrutiny of such policies.

In a coordinated effort, 19 Republican attorneys general have urged Costco Wholesale to abandon its diversity, equity, and inclusion (DEI) policies, citing potential discrimination issues and legal risks. This action arrives shortly after 98% of the retailer's shareholders rejected a proposal for a risk assessment tied to its DEI initiatives.

Costco has not yet responded to requests for comment. The Republican officials, in a letter addressed to Costco CEO Ron Vachris, accused the company of violating merit-based practices and federal law through its current policies.

Co-led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, the group has demanded a response from Costco within 30 days, either affirming the repeal of DEI policies or explaining their continuation. This move aligns with former President Donald Trump's executive order targeting DEI policies in various sectors.

(With inputs from agencies.)