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 alleging the company sent commercial emails with false or misleading subject lines to Washington state residents. The lawsuit, filed in Washington where Costco is headquartered, claims the company violated Washington's Commercial Electronic Mail Act and Consumer Protection Act by promising limited-time deals that were already extended past their advertised expiration dates. Subject lines cited include 'Today is the last day to access Member-Only Saving' and 'Hot Buys available for 5 Days Only.' Costco denies wrongdoing but settled to avoid litigation costs. The settlement received preliminary court approval on June 23, 2026, with a final approval hearing set for October 2, 2026. The class covers Washington residents who received Costco commercial emails between June 2, 2021, and July 7, 2026. Claimants may receive up to $500 per qualifying email, with the deadline to file being August 24, 2026.