Costco Wholesale Corporation has agreed to pay $14 million to settle a class action lawsuit accusing the retail giant of sending Washington state customers promotional emails with false or misleading subject lines about limited-time deals. Eligible consumers can now file a claim for a cash payout — no proof of purchase required.
What the Lawsuit Alleged
The case, Michael Aaland v. Costco Wholesale Corporation, was filed in the Superior Court of Washington for King County. It claims Costco violated the state’s Commercial Electronic Mail Act and Consumer Protection Act by sending marketing emails that created a false sense of urgency around sales and member discounts.
According to the settlement website, examples of the subject lines at issue include messages like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.” The lawsuit alleged Costco knew some of these “limited-time” promotions would actually be extended past their stated deadlines, making the urgency language misleading.
Costco has denied any wrongdoing and maintains it complied with all applicable state and federal laws. The company agreed to settle in order to avoid the cost, time, and uncertainty of continued litigation, rather than as an admission of fault.
Who Qualifies
You may be eligible for a payment if you meet all of the following:
- You received at least one commercial email sent by or on behalf of Costco between June 2, 2021, and July 7, 2026
- You were a Washington state resident at the time you received the email
- The email was received at an address that appears in Costco’s records
Notably, claimants don’t need to provide any proof of purchase or documentation — you simply need to certify the above under penalty of perjury.
How Much Could You Get
The $14 million settlement fund is non-reversionary, meaning Costco won’t get any unclaimed money back — every dollar left after attorneys’ fees, litigation costs, and a service award goes to class members. However, there’s no fixed per-person amount. The fund will be divided equally among everyone who files a valid, timely claim, so your actual payout depends on how many people ultimately apply. The more claims filed, the smaller each individual share.
Key Dates to Know
- July 2, 2026 — Settlement received preliminary court approval
- August 24, 2026 — Deadline to file a claim form, opt out, or object to the settlement
- October 2, 2026 — Final approval hearing before Judge Janet Helson
- Payments — expected roughly 61 days after final approval is granted and any appeals are resolved
How to File a Claim
Eligible Washington residents can submit a claim online through the official settlement website, WashingtonCommercialEmailSettlement.com, or by mailing a paper claim form postmarked by the August 24 deadline. If you received a notice with a Claim ID and PIN, the process is faster, but they aren’t required — you can still file without them.
Each class member is limited to one claim regardless of how many qualifying emails they received, and duplicate submissions will be rejected.
What Happens If You Do Nothing
If you don’t file a claim and the settlement becomes final, you won’t receive a payment — but you’ll still be bound by the settlement’s terms and will give up your right to sue Costco separately over the same claims, unless you formally opt out by the August 24 deadline.
Consumers with questions about eligibility or the claims process should refer to the official settlement website for the most current information, as details may be updated as the case proceeds toward final approval.
