Costco has agreed to a proposed $14 million class action settlement over allegations that it sent misleading promotional emails to shoppers, though not everyone will be eligible for a payout.
The settlement specifically covers Washington State residents who received certain Costco promotional emails between June 2, 2021, and July 7, 2026, according to USA Today. The lawsuit, originally filed in King County Superior Court in 2025, alleged the emails used misleading subject lines designed to create a false sense of urgency, such as "Today is the last day to access Member-Only Saving" and "Hot Buys available for 5 Days Only." Plaintiffs claimed some of the advertised promotions actually continued well past their stated deadlines, violating Washington's Commercial Electronic Mail Act and Consumer Protection Act.
Costco has denied any wrongdoing, but agreed to settle the case rather than face the cost and uncertainty of continued litigation. Both sides reached the agreement during mediation in March, and the settlement received preliminary court approval in June.
Eligible shoppers don't need to provide proof of purchase or any additional documentation to file a claim; they simply need to confirm they were Washington residents who received a qualifying email during the specified window. Payments will be distributed on a pro rata basis from the $14 million fund, meaning the exact amount each person receives will depend on how many valid claims are ultimately filed.
Consumers can file a claim online or by mail through the official settlement website. Those who received a settlement notice can use the Claim ID and PIN included with it, while others can fill out and mail a printable claim form instead. All claims must be submitted online or postmarked by August 24, 2026.
It's worth noting the settlement still requires final court approval, with a hearing scheduled for October 2, 2026. Payments will only go out if the agreement is finalized and any appeals are resolved.
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