Costco has agreed to a $14 million class-action settlement to resolve allegations that it sent misleading promotional emails to Washington state residents, violating the state's Commercial Electronic Mail Act (CEMA). Eligible shoppers who received certain emails between June 2021 and July 2026 have until August 24, 2026, to file a claim for a share of the settlement fund .

The Lawsuit: Deceptive "Limited-Time" Email Subject Lines

The settlement stems from the lawsuit Michael Aaland v. Costco Wholesale Corporation, filed in King County Superior Court in Washington . The plaintiff alleged that Costco sent commercial emails with false or misleading subject lines that created a false sense of urgency . These emails advertised promotions as temporary or time-limited, using phrases such as:

• "Today is the last day to access Member-Only Savings"

• "Hot Buys available for 5 Days Only"

The lawsuit claimed that Costco knew these promotions would be extended beyond the advertised deadlines, yet continued to send emails suggesting they were about to expire . This practice, the plaintiff argued, violated Washington's Commercial Electronic Mail Act (CEMA) and the state's Consumer Protection Act .

Costco has denied any wrongdoing and maintains it complied with the law . The company agreed to the settlement to avoid the cost and uncertainty of continued litigation . The court has not determined whether Costco violated the law . A final approval hearing is scheduled for October 2, 2026, in Seattle .

Who is Eligible for a Payment?

To be eligible for a share of the settlement, you must meet the following criteria :

1. Washington Resident: You must have been a resident of the state of Washington at the time you received the email .

2. Received a Qualifying Email: You must have received at least one commercial email sent by or on behalf of Costco between June 2, 2021, and July 7, 2026 .

3. Email in Costco's Records: The qualifying email must have been sent to an address that appears in Costco's records .

You do not need to be a Costco member to be eligible . If you received a notice about the settlement by email or mail, Costco's records indicate you likely qualify . However, even if you did not receive a direct notice, you may still be eligible if you meet the requirements .

How to File a Claim and What to Expect

The deadline to file a claim is August 24, 2026 .

Filing a Claim:

• Online: The fastest way is to file online at the court-approved settlement website, washingtoncommercialemailsettlement.com . You can file even if you don't have a Claim ID .

• By Mail: You can also download a claim form from the website, print it, fill it out, and mail it to the settlement administrator . The form must be postmarked by the August 24 deadline .

Payout Details:

• No Proof Needed: You do not need receipts or any proof of purchase to file a claim .

• One Claim Per Person: Each class member may submit only one claim form, regardless of how many qualifying promotional emails they received .

• Payment Amount is Uncertain: The actual payout is not yet determined. Under Washington law (CEMA), recipients could seek up to $500 per misleading email. However, the settlement itself does not guarantee anyone $500 .

• Equal Distribution: The $14 million fund will be distributed equally among all valid claimants, after deductions for court-approved attorneys' fees, litigation costs, and administrative expenses . This means the final amount per person will depend on the total number of valid claims filed. The fewer people who file, the larger each share .

• Payment Method: Payments may be issued by paper check, Venmo, PayPal, or other electronic payment methods . Payments will not be issued until the settlement receives final court approval and the window for any appeals has closed .

Important Deadlines and Your Rights

Key Dates:

• August 24, 2026: Deadline to file a claim, opt out of the settlement, or object to its terms .

• October 2, 2026: Final court approval hearing in Seattle .

Your Options:

• File a Claim: Submit a valid claim to receive a share of the settlement fund .

• Opt Out: Exclude yourself from the settlement by the August 24 deadline to preserve your right to sue Costco separately over these issues .

• Object to the Settlement: Submit a formal objection to the court by the August 24 deadline if you disagree with its terms .

• Do Nothing: If you take no action, you will not receive a payment. Once the settlement is final, you will give up your right to bring your own lawsuit against Costco concerning these allegations .

This settlement provides an opportunity for Washington residents who received certain promotional emails from Costco over the past five years to claim a share of a significant settlement fund. All eligible shoppers are encouraged to review their options and meet the August 24 deadline.