Costco has agreed to a $14 million settlement to resolve a class action lawsuit alleging the warehouse club sent misleading promotional emails to customers in Washington. While the settlement has received preliminary court approval, the details — including how much each eligible customer will receive — are still being worked out.
The promotional emails in question were sent out between June 2, 2021, and July 7, 2026. As part of the terms of the settlement, Costco denies any wrongdoing and says it complied fully with the law.
While the settlement awaits final approval, here’s what Costco members need to know about who’s eligible, how to file a claim and what to expect.
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What is the Costco class action lawsuit about?
The class action lawsuit filed on June 2, 2025 alleges that Costco sent out promotional emails with misleading subject lines, violating the Washington Consumer Protection Act and the Washington Commercial Electronic Mail Act.
For example, the warehouse club sent out emails with allegedly misleading subject lines like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.” The lawsuit alleges the emails “advertised temporary or time-limited promotions to consumers, when in fact Costco knew it was going to extend those promotions past the stated time frame.”
In short, the lawsuit claims Costco used misleading statements to pressure customers into making purchases during “limited time” sales that the company already intended to extend beyond the stated end date.
If the settlement receives final approval, the case will end without Costco being found liable under Washington’s Commercial Electronic Mail Act. That means even if you’re eligible to file a claim, you shouldn’t expect to receive the law’s maximum statutory damages of $500 per qualifying email. Instead, eligible customers will receive a share of the settlement fund based on the final terms approved by the court.
Who is eligible for a payout from the Costco settlement?
To be eligible for a payout, you must have lived in the state of Washington and received a commercial email from Costco at some point between June 2, 2021 and July 7, 2026. You may have already received an email about your eligibility to file a claim. If so, you can use the Claim ID and other information in that email to file a claim online.
If you haven’t already received an email notifying you that you might be eligible, you can go to the court-approved website, washingtoncommercialemailsettlement.com, to file a claim without a Claim ID and see if you are, in fact, eligible.
What is the deadline to file a claim?
(Image credit: Getty Images)
If you believe you’re eligible, file a claim through the court-approved website by August 24, 2026. If you don’t submit a claim, you won’t receive a payment.
If you want to be excluded from the settlement — say, because you’d like to file a lawsuit on your own — you need to opt out by that same August 24 deadline.
When will payments go out in the Costco settlement?
A date has not been set yet for the payouts because the complete terms have not been finalized. A final approval hearing is scheduled for October 2, 2026 so you can expect to see more specific details sometime after that.
In the meantime, make sure you file your claim (or your intention to opt out) by the August 24, 2026 deadline to ensure you’ll get any money you’re entitled to.