Costco Wholesale Corp.
has agreed to a $14 million settlement in a class-action lawsuit over allegations that it sent deceptive promotional emails to Washington state residents.
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The lawsuit, Aaland v. Costco Wholesale Corp.
, claimed the wholesale club violated Washington's Commercial Electronic Mail Act (CEMA) by using misleading subject lines.
Plaintiffs argued that the subject lines created a false sense of urgency, advertising limited-time offers that Costco intended to extend beyond the advertised period.
Examples cited in the filings include subject lines such as "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only."
Costco denied any wrongdoing but reached the agreement to resolve the claims.
Preliminary court approval was granted on June 23, 2026, with a final approval hearing scheduled for Oct. 2, 2026, in Seattle.
Washington residents whose email addresses are in Costco's records and who received the promotional emails between June 2, 2021, and July 7, 2026, may qualify for a payout.
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Eligible class members do not need to provide proof of membership or purchases to submit a claim.
Under CEMA, recipients could historically recover up to $500 per qualifying email violation, but state lawmakers recently reduced the penalty to $100 per violation.
The exact payout per individual will depend on the total number of valid claim forms submitted after deducting attorneys' fees, litigation costs, and service awards.
Eligible consumers must submit a single claim form by Aug. 24, 2026, to receive compensation.
Payouts will be distributed via paper check, Venmo, PayPal, Zelle, or other electronic methods.
Individuals also have until Aug.
24 to opt out of the settlement to retain their right to sue separately, or to object to the terms.
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Those who take no action by the deadline will forfeit their right to pursue future legal claims regarding the covered allegations.
