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.
The lawsuit alleges Costco violated Washington's Commercial Electronic Mail Act (CEMA), which regulates commercial email marketing.
Under CEMA, recipients may recover up to $500 per qualifying email. However, the actual payout from the settlement is currently unknown and will depend on the number of valid claims submitted.
While denying any wrongdoing, Costco agreed to pay $14 million to settle the lawsuit, Aaland v. Costco Wholesale Corp.
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Washington residents whose email addresses are in Costco's records and who received the promotional emails between June 2021 and July 2026 may be eligible to file a claim.
To receive a share of the settlement, eligible class members must submit a claim form by Aug. 24, 2026.
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.
Examples of the subject lines cited in the lawsuit include "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only."
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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.
Each class member may submit only one claim form, regardless of how many qualifying promotional emails they received from Costco.
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.
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.
The court will decide whether to grant final approval to the settlement on Oct. 2, 2026, at 3:30 p.m. PT in Seattle.
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Payments may be issued by paper check, Venmo, PayPal or other electronic payment methods.
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[ H/T Fox Business ]
