By Ashley Robinson Costco Wholesale Corporation has agreed to a proposed $14 million settlement to resolve a class action lawsuit accusing the retailer of sending Washington consumers promotional emails with misleading subject lines.
The case, Aaland v. Costco Wholesale Corporation, was filed in Washington state. The lawsuit alleges that Costco advertised temporary or limited-time promotions as if they were ending soon, even though the company allegedly knew that some offers would continue beyond the dates stated in the email subject lines.
Costco denies wrongdoing and has not admitted that its emails violated Washington law. The settlement is intended to resolve the litigation without a trial and still requires final court approval.
What the lawsuit alleges
The lawsuit was brought under Washington’s Commercial Electronic Mail Act and Consumer Protection Act. The plaintiff alleged that Costco used subject lines designed to create a false sense of urgency and encourage consumers to shop immediately.
Examples identified in the case include subject lines such as “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.” The lawsuit claims that consumers could reasonably believe the promotions would end permanently, even when Costco later extended or continued the offers.
The case does not accuse Costco of sending ordinary account notices or receipts. It concerns commercial promotional messages sent to Washington residents during a defined period.
Who may qualify for the settlement
The proposed settlement class includes people who lived in Washington and received a qualifying commercial email from Costco, or from someone acting on Costco’s behalf, between June 2, 2021, and July 7, 2026. A person does not necessarily have to be a Costco member to qualify. Eligibility depends on receiving a covered email while living in Washington.
How much could eligible claimants receive
The settlement notice states that eligible class members may submit one claim form, even if they received multiple qualifying emails. The potential amount is not guaranteed. Under Washington law, qualifying commercial emails can potentially lead to statutory damages of up to $500 per message, but the settlement payment will depend on the number of valid claims and the amount remaining after court-approved deductions.
The $14 million settlement fund will be used for payments to approved claimants, attorneys’ fees, litigation expenses, service awards and administrative costs. If a large number of people submit valid claims, each person’s payment may be substantially lower than $500. The final amount will not be known until the claims process is completed.
Claim deadline and final approval hearing
Eligible people must submit a valid claim form online or by mail by August 24, 2026. The same date is also the deadline for class members who want to exclude themselves from the settlement or object to its terms.
A person who does nothing will not receive a settlement payment. If the settlement receives final approval, people who remain in the class may also give up the right to bring a separate lawsuit against Costco over the same promotional-email allegations.
The final approval hearing is scheduled for October 2, 2026, in federal court in Seattle, Washington. At that hearing, the judge will consider whether the settlement is fair, reasonable and adequate. The court may approve the agreement, reject it or require changes before final approval.
What affected consumers should know
People who received a notice should carefully check the official settlement website and use only the information provided by the court-approved administrator. Claimants should be cautious about websites or messages promising a guaranteed $500 payment. The actual payment may vary, and no money will be distributed unless the court approves the agreement.
The settlement is separate from other recent Costco lawsuits involving products, tariffs, food safety and advertising claims. It does not mean that every Costco shopper qualifies for compensation. The class is limited to Washington residents who received the covered commercial emails during the specified period.
Why the case matters
The Costco email lawsuit highlights the legal risks companies face when promotional language creates a false impression that a deal is about to expire. Retailers may use time-limited offers to encourage quick purchases, but consumer-protection laws can challenge marketing that allegedly misrepresents how long a promotion will remain available.
For now, the Costco settlement is proposed rather than final. Eligible Washington consumers must submit a claim by August 24, 2026, if they want to be considered for a payment. The court’s October hearing will determine whether the $14 million agreement moves forward.