Residents who made purchases at Costco in Washington could qualify for a financial payout after the retailer agreed to settle a class action lawsuit alleging it sent deceptive promotional emails advertising false deadlines.
The lawsuit asserts that Costco breached Washington’s Commercial Electronic Mail Act (CEMA), which governs commercial email marketing campaigns.
Under CEMA, recipients may be entitled to recover up to $500 for each qualifying email. However, the exact payout amount remains unknown and will depend on the total number of valid claims submitted.
Despite denying any liability, Costco paid $14 million to settle the lawsuit, Aaland v. Costco Wholesale Corp.
Shoppers arrive and depart from a Costco Wholesale store on June 13, 2026, in Bayonne, New Jersey. (Gary Hershorn/Getty Images / Getty Images)
Washington residents whose email addresses are on file with Costco and who received these promotional emails between June 2021 and July 2026 may be eligible to submit a claim.
To obtain a portion of the settlement funds, eligible class members must submit a claim form by August 24, 2026.
The lawsuit claims Costco violated state law by sending commercial emails featuring deceptive subject lines that fabricated a false sense of urgency, falsely advertising limited-time offers that the retailer allegedly intended to extend well past the promotional period.
The deceptive subject lines cited in the lawsuit include “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Customers browse food items at a Costco store in Colchester, Vermont, in August 2024. (Robert Nickelsberg/Getty Images / Getty Images)
The net proceeds from the $14 million settlement will be distributed equally among class members who file valid claims, minus court-approved attorneys’ fees, litigation costs, and service awards. The exact payout per individual remains uncertain, as it will depend on the total number of approved claims.
Each class member may submit only one claim form, regardless of the number of qualifying promotional emails they received from Costco.
Individuals may also opt out of the settlement to retain their right to sue separately or to object to its terms by August 24.
Those who take no action will not receive any compensation and will be barred from pursuing future legal claims related to the allegations covered by the settlement.
The court will decide whether to grant final approval to the settlement on October 2, 2026, at 3:30 p.m. PT in Seattle.
A customer hands a receipt to a door checker employee at the exit of a Costco megastore in Queens, New York. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
Payments may be disbursed via paper check, Venmo, PayPal, or other electronic payment methods.
