Costco(US:COST) Xin Lang Cai Jing·2026-01-27 11:36Core Viewpoint - The court ruled that Costco (Nanjing) Commercial Co., Ltd. breached the contract by unilaterally canceling the membership of Mr. Li, ordering the company to restore his membership for an additional 96 days [1][17]. Group 1: Legal Proceedings - Mr. Li filed a lawsuit against Costco Nanjing after the company canceled his membership, claiming it constituted a fundamental breach of contract [1][17]. - The court found that Mr. Li's actions, including multiple complaints and claims for compensation, did not violate legal provisions and were not indicative of "profit-seeking" behavior [17][22]. - Costco argued that Mr. Li's frequent claims and complaints suggested he was not a typical consumer, but the court ruled that such behavior did not justify the cancellation of his membership [1][4][17]. Group 2: Membership Details - Mr. Li purchased a membership card for 199 yuan, originally priced at 299 yuan, with a validity period from May 28, 2024, to May 27, 2025 [1][3]. - The company canceled his membership on February 20, 2025, and refunded the membership fee, which Mr. Li contested in court [1][14]. - The court determined that Costco's cancellation of Mr. Li's membership was a unilateral termination of the contract, which was deemed a breach of contract [17][22]. Group 3: Company Defense - Costco claimed that Mr. Li's behavior, including 23 shopping trips and multiple claims totaling 280,000 yuan, indicated he was a "professional litigant" rather than a genuine consumer [4][6]. - The company also pointed to Mr. Li's history of complaints and lawsuits against various retailers as evidence of his non-compliance with membership rules [6][11]. - The court, however, ruled that the terms of membership that allowed Costco to deny entry were not adequately communicated to Mr. Li, thus invalidating the basis for cancellation [21][22].