Washington Costco shoppers may be eligible to receive a cash payout after the wholesaler agreed to settle a class action lawsuit.
The lawsuit claimed the retailer sent misleading promotional emails advertising limited-time offers between June 2, 2021, and July 7th, 2026.
The class action lawsuit alleges Costco violated Washington’s Commercial Electronic Mail Act (CEMA). CEMA regulates commercial email marketing, and under that act, Washington Costco shoppers could recover up to $500 per qualifying email.
However, at this moment in time, actual payout numbers from the settlement are unknown. It will depend on how many shoppers file a claim.
Costco admitted to no wrongdoing in the lawsuit. However, they did agree to pay $14 million to settle the lawsuit, Aaland v. Costco Wholesale Corp.
Within the lawsuit, Costco allegedly violated Washington state law by sending commercial emails with deceptive subject lines. They created a false sense of urgency for limited-time offers that plaintiffs allege the retailer intended to extend beyond the advertised promotional period.
Some of these subject lines include “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Washington Costco shoppers whose email addresses are in Costco’s system and who received the promotional emails between June 2021 and July 2026 may be eligible to file a claim.
Eligible members must submit a claim form by August 24, 2026. They can file a claim online or download a PDF version to print, complete, and mail to the settlement administrator. Members may only submit one claim form. It doesn’t matter how many of the qualifying promotional emails they received within the noted time period.
Those affected can also choose to opt out of the settlement to preserve their right to sue separately or object to its terms by August 24th. Those who take no action receive no compensation. They are also barred from pursuing future legal claims related to the allegations.
The court must now decide whether to grant final approval to the settlement on October 2, 2026, in Seattle.
Once the claims are all submitted, the net proceeds of the $14 million settlement will be distributed equally after court-approved attorneys’ fees, litigation costs, and service awards are deducted.
The payment will depend on the number of claims issued by paper check, Venmo, PayPal, or other electronic methods.
This lawsuit arrives on the heels of another class action lawsuit against Costco. The other lawsuit was filed in January.
The lawsuit appeared in the US District Court for the Southern District of California. It stated that Costco allegedly advertised its Kirkland Signature Seasoned Rotisserie Chicken as containing no added preservatives.
The plaintiff argued that in-store signs and details on Costco’s website “create an overall net impression that the Rotisserie Chicken does not contain added preservatives,” even though the plaintiff allegedly found two ingredients that could be considered preservatives.
