Costco Agrees to $14M Settlement Over Misleading Email Promotions

Costco agreed to pay $14 million to settle a class action lawsuit accusing the retailer of sending deceptive promotional emails to Washington residents. The case, Aaland v. Costco Wholesale Corp., alleges the company violated Washington’s Commercial Electronic Mail Act by advertising limited-time offers that it later extended. Eligible residents who received these emails between June 2, 2021, and July 7, 2026, may submit claims by August 24, 2026.

What the lawsuit alleged

Costco sent commercial emails with subject lines like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only,” according to the lawsuit. The retailer allegedly knew these promotions would be extended beyond the advertised deadlines, violating Washington’s Commercial Electronic Mail Act and Consumer Protection Act. Costco denied any wrongdoing but agreed to settle.

Who qualifies and how much they can receive

Washington residents who received at least one qualifying email from Costco between June 2, 2021, and July 7, 2026, are eligible to file a claim. You do not need to be a Costco member. Under Washington law, recipients can recover up to $500 per qualifying email, though the actual payout depends on the total number of valid claims submitted and will be divided equally among all claimants after attorneys’ fees and court costs are deducted.

How to file a claim

Eligible class members must submit a claim form by August 24, 2026. Each person can submit only one claim form, regardless of how many promotional emails they received. Settlement payments can be received as a check, PayPal, Venmo, or another electronic payment method. The final court approval hearing is scheduled for October 2, 2026.

What happens if you opt out

Class members can choose to opt out of the settlement by August 24, 2026, to preserve their right to sue Costco separately or object to the settlement terms. Any uncashed or undeliverable payments may be used for a second distribution or donated to the Legal Foundation of Washington.

Final Thoughts

Costco shareholders should note the $14 million settlement represents a modest expense for the warehouse giant, which reported $63.4 billion in revenue last year. The case underscores growing scrutiny of misleading marketing claims across retail.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.