Washington Costco shoppers may be in line for a slice of a proposed $14 million settlement over promotional emails that allegedly made limited-time deals sound more urgent than they were. The catch: eligible consumers will not automatically receive money, and the payout is not expected to be $500 for every email.
The proposed deal in Aaland v. Costco Wholesale Corporation covers Washington residents who received commercial emails from Costco, or someone acting for the retailer, between June 2, 2021, and July 7, 2026, according to the official settlement website. Costco denies wrongdoing and says it complied with state and federal law. The case is pending in King County Superior Court.
What The Lawsuit Says Costco Emails Promised
The lawsuit accused Costco of using subject lines that advertised promotions as temporary or about to expire, even when the offers allegedly continued afterward. Examples cited in coverage include “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only,” as reported by ClassAction.org.
Who Can File A Costco Settlement Claim
To qualify, a person must have lived in Washington when receiving at least one qualifying Costco commercial email during the covered period. Kiplinger notes that people may be able to file even if they did not receive a settlement notice, using the court-approved website to check eligibility.
Only one claim form may be submitted per class member, regardless of how many qualifying emails arrived in the inbox. The claim deadline is August 24, 2026, and FOX 10 Phoenix reports that people who want a payment must submit a claim rather than simply remain in the class.
Why The $500 Figure Is Misleading
Washington’s commercial email statute lists damages of $500, or actual damages if greater, for a violation, according to the Washington State Legislature. That number is a statutory damages figure, not a promise that Costco settlement participants will receive $500 for every message.
Under the proposed agreement, the $14 million fund will be divided equally among people with timely, valid claims after court-approved fees, expenses, administration costs and any service award are deducted. The settlement administrator says the final amount cannot be estimated until the number of approved claims is known.
Deadline And Seattle Approval Hearing
Class members can file, opt out or object by August 24, 2026. The settlement still requires final approval at a hearing scheduled for October 2, 2026, in Seattle, and payments would not be distributed until approval is granted and any appeals are resolved, according to FOX 10 Phoenix.
People who do nothing will not receive a settlement payment, and if the deal becomes final they may lose the right to bring a separate lawsuit over the same allegations. The proposed payment options could include a paper check, Venmo, PayPal or another electronic method, but the amount and timing remain unsettled.
