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Costco shoppers in Washington may be eligible to receive a cash payout after the retailer agreed to settle a class action lawsuit accusing the retailer of sending misleading promotional emails advertising limited-time offers.<\/p>\n
The lawsuit alleges Costco violated Washington’s Commercial Electronic Mail Act (CEMA), which regulates commercial email marketing. \u00a0<\/p>\n
Under CEMA, recipients may recover up to\u00a0$500 per qualifying email. However, the actual payout from the settlement is currently unknown and will depend on the number of valid claims submitted.\u00a0<\/p>\n
While denying any wrongdoing, Costco agreed to pay\u00a0$14 million to settle the lawsuit,\u00a0Aaland v. Costco Wholesale Corp.<\/p>\n
COSTCO HIT WITH LAWSUIT ALLEGING PROTEIN POWDER SOLD IN STORES CONTAINS ‘DANGEROUS’ LEVELS OF LEAD, ARSENIC<\/p>\n
People arrive and depart at a Costco Wholesale store on June 13, 2026, in Bayonne, New Jersey.\u00a0 (Gary Hershorn\/Getty Images \/ Getty Images)<\/p>\n
Washington residents whose email addresses are in Costco’s records and who received the promotional emails between\u00a0June 2021 and July 2026 may be eligible to file a claim.\u00a0<\/p>\n
To receive a share of the settlement, eligible class members must submit a claim form by\u00a0Aug. 24, 2026.<\/p>\n
According to the lawsuit, Costco allegedly violated state law by sending commercial emails with deceptive subject lines that created a false sense of urgency by advertising limited-time offers that plaintiffs allege the retailer intended to extend beyond the advertised promotional period.\u00a0<\/p>\n
Examples of the subject lines cited in the lawsuit include\u00a0“Today is the last day to access Member-Only Savings” and\u00a0“Hot Buys available for 5 Days Only.”<\/p>\n
Customers look over food items at a Costco store in Colchester, Vermont, in August 2024. (Robert Nickelsberg\/Getty Images \/ Getty Images)<\/p>\n
COSTCO QUIETLY DISCONTINUES AWARD-WINNING KIRKLAND ITEM FANS CALL ‘ONE OF THE BEST’ IN THE MARKET<\/p>\n
The net proceeds of the $14 million settlement will be distributed equally among class members who submit valid claims after court-approved attorneys’ fees, litigation costs and service awards are deducted. The exact payout per person remains unknown because it will depend on the total number of approved claims.\u00a0<\/p>\n
Each class member may submit only\u00a0one claim form, regardless of how many qualifying promotional emails they received from Costco.<\/p>\n
Ticker Security Last Change Change % COST COSTCO WHOLESALE CORP. 966.58 +15.00
\n +1.58%<\/p>\n
Individuals may also choose to opt out of the settlement to preserve their right to sue separately or object to its terms by Aug. 24.\u00a0<\/p>\n
Those who take no action will receive no compensation and will be barred from pursuing future legal claims related to the allegations covered by the settlement.<\/p>\n
The court will decide whether to grant final approval to the settlement on\u00a0Oct. 2, 2026, at 3:30 p.m. PT in Seattle.\u00a0<\/p>\n
Customer handing receipt to door checker employee at the exit, Costco megastore, Queens, New York. (Lindsey Nicholson\/UCG\/Universal Images Group via Getty Images \/ Getty Images)<\/p>\n
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