Costco Wholesale Corporation has agreed to a $14 million settlement in a class action lawsuit alleging the company sent promotional emails to Washington residents with misleading subject lines. The case, Michael Aaland v. Costco Wholesale Corporation, is pending in King County Superior Court. Eligible shoppers have until August 24 to file claims for payments up to $500, according to fortune.com.
The lawsuit claims Costco violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act by advertising time-limited promotions in email subject lines while extending those promotions beyond the stated deadlines. Examples of subject lines cited include "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only." Costco denies wrongdoing and says it settled to avoid the cost and uncertainty of continued litigation, with no court ruling on the merits so far, fortune.com reports.
The settlement applies to individuals who received at least one commercial email from or on behalf of Costco between June 2, 2021, and July 7, 2026, resided in Washington state at the time, and whose email addresses appear in Costco’s records. Recipients who received a notice by email or mail are likely eligible, but those who did not receive a notice may also qualify, according to fortune.com. The case highlights scrutiny on marketing practices under state electronic mail laws.
Eligible Washington residents have until August 24 to submit claims to receive payments from the $14 million fund. The case remains pending in King County Superior Court, with no court decision yet on whether Costco violated the law, according to fortune.com.