Key Takeaways
- • Costco agreed to a $14 million settlement to resolve a class action lawsuit alleging the retailer sent Washington state residents promotional emails with false or misleading subject lines extending beyond advertised deadlines, without admitting wrongdoing.
- • Eligible claimants are Washington state residents who received at least one commercial email from Costco between June 2, 2021, and July 7, 2026, with potential payouts up to $500 per qualifying individual.
- • The settlement deadline is August 24, 2026; claims can be filed online at washingtoncommercialemailsettlement.com or by mail without requiring receipts or additional documentation.
- • The lawsuit alleged violations of Washington's Commercial Electronic Mail Act (CEMA) and Consumer Protection Act; Costco maintains compliance and settled to avoid litigation costs and uncertainty rather than conceding liability.
- • Claimants who received settlement notices by email or mail are presumed eligible, though those without notices may still qualify if they meet residency and email receipt requirements.
Summary
Costco Wholesale Corporation has agreed to settle a class action lawsuit for $14 million related to alleged deceptive email marketing practices in Washington state. The case, Michael Aaland v. Costco Wholesale Corporation, involves claims that the retailer sent commercial emails with misleading subject lines advertising time-limited promotions—such as "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only"—while extending those promotions beyond the stated deadlines. The settlement is pending approval in King County Superior Court in Washington.
The plaintiff alleged Costco violated both Washington's Commercial Electronic Mail Act (CEMA) and the state's Consumer Protection Act. Costco denies any wrongdoing and maintains it complied with applicable laws. The company agreed to the settlement to avoid the expense and unpredictability of protracted litigation rather than as an admission of liability. No court has adjudicated the underlying allegations.
Eligibility for compensation requires meeting three criteria: receiving at least one commercial email from or on behalf of Costco between June 2, 2021, and July 7, 2026; residing in Washington state at the time of receipt; and having the email address registered in Costco's records. Individuals who received settlement notices via email or mail are presumed eligible, though those without notices may still file if they satisfy all requirements.
The claims process is designed for accessibility. No receipts or supporting documentation are required. The fastest method is online filing through the court-approved website washingtoncommercialemailsettlement.com, where claimants can submit claims even without a Claim ID. Alternatively, claimants may download, complete, and mail a claim form to the settlement administrator. The deadline for all claims is August 24, 2026.
The plaintiff alleged Costco violated both Washington's Commercial Electronic Mail Act (CEMA) and the state's Consumer Protection Act. Costco denies any wrongdoing and maintains it complied with applicable laws. The company agreed to the settlement to avoid the expense and unpredictability of protracted litigation rather than as an admission of liability. No court has adjudicated the underlying allegations.
Eligibility for compensation requires meeting three criteria: receiving at least one commercial email from or on behalf of Costco between June 2, 2021, and July 7, 2026; residing in Washington state at the time of receipt; and having the email address registered in Costco's records. Individuals who received settlement notices via email or mail are presumed eligible, though those without notices may still file if they satisfy all requirements.
The claims process is designed for accessibility. No receipts or supporting documentation are required. The fastest method is online filing through the court-approved website washingtoncommercialemailsettlement.com, where claimants can submit claims even without a Claim ID. Alternatively, claimants may download, complete, and mail a claim form to the settlement administrator. The deadline for all claims is August 24, 2026.
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