Costco customers in Washington state may be eligible for a share of a $14 million settlement after the retailer agreed to resolve allegations over allegedly misleading promotional emails. Eligible consumers must submit a claim before the August 24 deadline.
Settlement Follows Claims Over Promotional Emails
Costco Wholesale Corp agreed to the settlement following a class action lawsuit alleging that some commercial emails sent to Washington residents contained misleading subject lines. The lawsuit claimed that Costco promoted offers as temporary or limited-time deals but allegedly continued those promotions beyond the dates initially advertised.
Examples cited in the case included messages such as “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only.” The plaintiffs argued that these practices violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act.
Costco has denied any wrongdoing but agreed to settle the case to avoid further legal costs and continued litigation.
Who Could Receive a Payment
Residents of Washington state who received qualifying Costco promotional emails between June 2, 2021, and July 7, 2026 may be eligible for compensation. Customers who received a notification by email or letter are likely to qualify, according to settlement information.
The amount paid to each approved claimant will depend on the number of valid claims submitted. The available settlement fund will be divided among eligible participants after legal fees, administrative costs and other approved expenses are deducted. The attorneys’ fees requested as part of the settlement total $4.62 million.
Consumers Must Submit Claims Before Deadline
Eligible customers can file a claim online or complete a paper form and send it to the settlement administrator. The deadline to submit a claim is August 24. A final approval hearing for the settlement is scheduled for October 2, when the court will review the agreement and determine whether it can proceed.
Costco Faces Separate Advertising Lawsuit
The settlement comes as Costco faces another legal challenge related to advertising claims. In January, a separate class action lawsuit was filed in the US District Court for the Southern District of California over the retailer’s Kirkland Signature Seasoned Rotisserie Chicken.
The complaint alleges that Costco’s advertising suggested the product contained no added preservatives. The plaintiff argued that store signs and online descriptions created a misleading impression about the product’s ingredients.
Costco has not been found liable in either case, and the email settlement represents an agreement to resolve one legal dispute without an admission of wrongdoing.
