The case centers on allegations that Costco sent promotional emails with subject lines that created a false sense of urgency by advertising offers as temporary, despite allegedly planning to extend those promotions. The proposed settlement received preliminary court approval in June 2026, while a final approval hearing is scheduled for October 2, 2026.
The lawsuit, Michael Aaland v. Costco Wholesale Corporation, was filed in King County Superior Court in Washington. The claims allege violations of Washington’s Commercial Electronic Mail Act (CEMA) and the state’s Consumer Protection Act. The litigation focuses specifically on marketing emails sent to Washington residents over a defined period.
Lawsuit Alleges Misleading Marketing Email Subject Lines
According to the settlement website and court filings, plaintiff Michael Aaland alleged that Costco used email subject lines suggesting consumers had only a limited amount of time to take advantage of certain promotions, even though the company allegedly knew those offers would later be extended.
The court-approved settlement notice states that Costco was accused of sending emails that “advertised temporary or time-limited promotions to consumers, when in fact Costco knew it was going to extend those promotions past the stated time frame.”
Examples cited in the case include subject lines such as “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only.” According to the settlement documents, the lawsuit argues that such communications violated Washington’s laws governing commercial email messages. Under CEMA, recipients of unlawful commercial emails may seek statutory damages of $500 for each message received.
Original Plaintiff Was Replaced During the Litigation
Court records show the litigation was originally filed on June 2, 2025, by Joseph Zydel. According to the settlement agreement, Zydel was later replaced as the proposed class representative by Michael Aaland, who became the named plaintiff in the case.
The settlement agreement explains that attorneys sought the substitution after learning that Zydel had an existing Chapter 13 bankruptcy repayment plan. According to the agreement, the change was made to avoid “administrative delays” that could affect the proposed settlement.
Costco has denied the allegations throughout the case. The settlement agreement states that the company maintains it complied with applicable legal requirements and agreed to settle the lawsuit to avoid the expense, uncertainty, and risks associated with continued litigation. The court has not determined that Costco did anything wrong.
Eligibility requirements and how settlement payments will be determined
According to ClassAction, consumers may qualify for a payment if they received a commercial email sent by Costco or on Costco’s behalf, were Washington residents at the time they received the email, received it between June 2, 2021, and July 7, 2026, and the message was sent to an email address contained in Costco’s marketing records.
Although the lawsuit states that CEMA allows recipients to seek statutory damages of $500 for each unlawful commercial email, that does not mean eligible claimants will automatically receive that amount through the settlement.
Instead, the proposed agreement establishes a $14 million settlement fund. The amount each eligible claimant ultimately receives will depend on the total number of valid claims submitted, along with deductions for attorneys’ fees, settlement administration costs, and other court-approved expenses.
Consumers who wish to participate in the settlement must submit a valid claim by August 24, 2026.
