Shoppers in Washington state who received certain promotional emails from Costco over the past five years may be eligible for a cash payment under a proposed $14 million class action settlement.
The settlement resolves a lawsuit alleging Costco sent commercial emails with false or misleading subject lines that advertised limited-time sales or last-day offers, even though some promotions were allegedly extended beyond the stated deadlines. Plaintiffs claimed the emails violated Washington's Commercial Electronic Mail Act and Consumer Protection Act.
Costco denied the allegations and any wrongdoing but agreed to settle the case to avoid the cost, burden and uncertainty of continued litigation. The proposed settlement received preliminary approval
in June, with a final approval hearing scheduled for October.
Here's what consumers should know.
What is the lawsuit about?
The lawsuit, originally filed in King County Superior Court in 2025, alleged Costco sent Washington consumers promotional emails containing misleading subject lines that created a false sense of urgency.
According to the settlement website, examples of the emails included subject lines such as "Today is the last day to access Member-Only Saving" and "Hot Buys available for 5 Days Only." Plaintiffs alleged some advertised promotions continued beyond those deadlines, making the subject lines misleading under Washington law.
Before agreeing to settle, both sides reviewed information about Costco's email marketing practices, including promotional emails at issue in the lawsuit, and reached an agreement during mediation in March 2026.
Who is eligible for a payment?
The settlement covers anyone who was a Washington resident and received a qualifying commercial email sent by Costco, or on its behalf, between June 2, 2021, and July 7, 2026.
Eligible class members who submit a valid claim do not need to provide proof of purchase or any additional documentation.
Payments will be made on a pro rata basis from the $14 million settlement fund, meaning the amount each person receives will depend on the number of valid claims filed and other court-approved deductions.
How can eligible consumers file a claim?
Eligible consumers can submit a claim online or by mail through the official settlement website. Those who received a settlement notice can file using the Claim ID and PIN included with the notice, while others can complete and mail a printable claim form.
Claims must be submitted online or postmarked by Aug. 24, 2026.
The settlement still requires final court approval. A hearing is scheduled for Oct. 2, 2026, and payments will be distributed only if the agreement receives final approval and any appeals are resolved. Only Washington residents who received qualifying promotional emails are eligible to file a claim.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com, or on X @athompsonUSAT
This article originally appeared on USA TODAY: Some Costco shoppers could qualify for cash in settlement payout
