Costco reaches $14M settlement over misleading promotional email lawsuit

Published Jul 24, 05:50 PM UTC

A proposed $14 million class action settlement has been reached in a lawsuit alleging Costco sent Washington state residents promotional emails with misleading subject lines that created false urgency, such as claiming limited-time offers that were later extended. The lawsuit, filed in 2025, claimed violations of Washington's Commercial Electronic Mail Act and Consumer Protection Act. Costco denies wrongdoing but agreed to settle. Eligible class members are Washington residents who received qualifying promotional emails between June 2, 2021, and July 7, 2026. Payments will be distributed on a pro rata basis from the $14 million fund after final court approval, scheduled for October 2, 2026. Claims must be submitted by August 24, 2026, and no proof of purchase is required.