Costco reaches $14 million settlement over misleading promo emails

Published Jul 27, 12:41 PM UTC

Costco has agreed to a $14 million settlement to resolve a class action lawsuit in Washington state, where it is headquartered. The lawsuit accused the company of violating Washington's Commercial Electronic Mail Act and Consumer Protection Act by sending promotional emails with false or misleading subject lines. Specifically, the emails promised limited-time deals that Costco had already decided to extend past their advertised expiration dates. Examples cited include subject lines like 'Today is the last day to access Member-Only Saving' and 'Hot Buys available for 5 Days Only.' Costco denied wrongdoing but settled to avoid litigation costs. The settlement received preliminary court approval on June 23, 2026, with a final hearing set for October 2, 2026. Eligible claimants are Washington residents who received such emails between June 2, 2021, and July 7, 2026. No purchase documentation is required, and claimants may receive up to $500 per qualifying email. The deadline to file claims is August 24, 2026.