Costco $COST agreed to a $14 million settlement to resolve a class action lawsuit alleging the company sent commercial emails with false or misleading subject lines to Washington state residents.
The lawsuit, filed in Washington — where Costco is headquartered — accuses the company of violating Washington's Commercial Electronic Mail Act and the Washington Consumer Protection Act. At the heart of the lawsuit is the claim that Costco's promotional emails promised limited-time deals that the company had already decided to extend past their advertised expiration dates. Subject lines cited in the settlement notice include "Today is the last day to access Member-Only Saving" and "Hot Buys available for 5 Days Only."
The settlement received preliminary court approval on June 23, 2026. Costco has denied any wrongdoing but agreed to settle to avoid the cost and uncertainty of continued litigation, according to Inc. A final approval hearing is scheduled for October 2, 2026.
The settlement class covers anyone who received a commercial email sent by Costco or on its behalf between June 2, 2021, and July 7, 2026, and who was a Washington resident at the time of receipt, with the email arriving at an address in Costco's records. Membership in Costco is not required to be eligible.
Valid claimants are entitled to a pro rata share of the settlement fund, and no documentation of purchase is needed to qualify. How much each person ultimately receives will be determined in part by how many people file claims. Under Washington's Commercial Electronic Mail Act, eligible recipients could receive up to $500 per qualifying email, according to Allrecipes.
The deadline to file is August 24, 2026, whether submitting through the settlement website or sending a paper form by mail. Payments can be distributed via PayPal $PYPL, Venmo, Zelle, or mailed check. Payments will not be issued until the settlement clears final court approval and the window for any appeals has closed.
Class members who submit a valid claim and receive settlement funds give up the right to bring their own lawsuit over the issues in the case. Those who wish to preserve that right may opt out of the settlement, though doing so forfeits any payment. Settlement class members who neither opt out nor file a claim also give up their right to sue if the settlement receives final approval.
Those with questions may contact the settlement administrator at 888-808-6247 or reach class counsel at 206-746-2337.