Costco To Pay $14 Million In Misleading Email Settlement

Costco has agreed to a $14 million settlement to resolve a class action lawsuit in Washington state. The legal action focused on allegations that the retailer sent promotional emails with misleading subject lines. These emails often claimed limited time offers were ending, even though Costco reportedly intended to extend those promotions.

The settlement applies to Washington residents who received commercial emails from the company between June 2, 2021, and July 7, 2026. While Costco denies any wrongdoing and maintains it followed the law, the company agreed to the settlement to avoid further litigation costs.

Eligible residents can file a claim online or by mail without needing to provide proof of purchase. The total payment each person receives will depend on the number of valid claims submitted before the August 24, 2026 deadline. A final court hearing to approve the agreement is set for October 2, 2026.