Costco Agrees to $14 Million Settlement Over Email Subject Lines

Costco has agreed to a $14 million settlement to resolve a class-action lawsuit that alleged the warehouse chain sent promotional emails with false or misleading subject lines to Washington residents. Eligible shoppers have until August 24, 2026, to file a claim for a potential payment of up to $500. The case, Michael Aaland v. Costco Wholesale Corporation, was filed in King County Superior Court in Washington. The core of the complaint is that Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by advertising time-limited promotions in email subject lines, while allegedly extending these promotions beyond the stated deadlines. Specific examples of subject lines cited in the litigation include "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only." Costco denies any wrongdoing, maintaining that it complied with the law and agreed to the settlement solely to avoid the costs and uncertainties associated with continued litigation. No court has made a determination on whether Costco actually violated any laws. To qualify for the settlement, individuals must have received at least one commercial email sent from or on behalf of Costco between June 2, 2021, and July 7, 2026. Additionally, recipients must have resided in Washington state at the time they received the email, and the email address must appear in Costco’s records. While receiving a settlement notice via email or mail suggests eligibility, individuals who did not receive such a notice may still qualify if they meet all the outlined criteria. Filing a claim does not require any receipts or specific proof of purchase. The most efficient method for filing a claim is online through the court-approved website, washingtoncommercialemailsettlement.com. Claimants can submit their information even if they do not have a specific Claim ID. Alternatively, individuals can download a claim form from the website, print and complete it, and then mail it to the designated settlement administrator. Regardless of the submission method, claims must be filed online or postmarked by the deadline of August 24, 2026. The exact amount of the payout per eligible claimant has not yet been finalized, but it is expected to be up to $500. The settlement aims to compensate Washington consumers who may have been misled by Costco's email marketing practices.