Costco agrees to pay $14 Million to settle lawsuit over promotional emails in Washington

Costco agreed to pay $14 million to settle a class-action lawsuit in Washington state that accused it of sending promotional emails with allegedly misleading subject lines about limited-time offers. Although the company denied any wrongdoing, it agreed to the settlement and eligible consumers may file claims through Aug. 24, 2026.

According to Fox Business, the lawsuit alleges that the retail chain violated Washington's Commercial Electronic Mail Act (CEMA), which regulates the sending of commercial messages via email. The settlement pertains to the case Aaland v. Costco Wholesale Corp.

The lawsuit alleges that Costco used subject lines that created a false sense of urgency when promoting offers that, according to the plaintiffs, extended beyond the advertised period. Examples cited include messages such as "Today is the last day to access exclusive member savings" and "Offers available for five days only."

Residents of Washington State whose email addresses are on Costco's records and who received these promotional messages between June 2021 and July 2026 are eligible to file a claim.

The amount each beneficiary will receive is not yet known. The net proceeds from the settlement will be distributed equally among those who submit valid claims, after deducting attorneys' fees, litigation costs, and other compensation approved by the court. Each class member may file only one claim, regardless of the number of emails received.