Updated July 24, 2026, 4:16 p.m. ET
Shoppers in Washington state who obtained sure promotional emails from Costco over the previous 5 years may be eligible for a cash payment underneath a proposed $14 million class motion settlement.
The settlement resolves a lawsuit alleging Costco despatched industrial emails with false or deceptive topic strains that marketed limited-time gross sales or last-day affords, although some promotions have been allegedly prolonged past the said deadlines. Plaintiffs claimed the emails violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act.
Costco denied the allegations and any wrongdoing however agreed to settle the case to keep away from the fee, burden and uncertainty of continued litigation. The proposed settlement obtained preliminary approval in June, with a remaining approval listening to scheduled for October.
Here’s what shoppers ought to know.
What is the lawsuit about?
The lawsuit, initially filed in King County Superior Court in 2025, alleged Costco despatched Washington shoppers promotional emails containing deceptive topic strains that created a false sense of urgency.
According to the settlement web site, examples of the emails included topic strains resembling “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only.” Plaintiffs alleged some marketed promotions continued past these deadlines, making the topic strains deceptive underneath Washington legislation.
Before agreeing to settle, each side reviewed details about Costco’s electronic mail advertising practices, together with promotional emails at challenge within the lawsuit, and reached an settlement throughout mediation in March 2026.
Who is eligible for a cost?
The settlement covers anybody who was a Washington resident and obtained a qualifying industrial electronic mail despatched by Costco, or on its behalf, between June 2, 2021, and July 7, 2026.
Eligible class members who submit a sound declare don’t want to supply proof of buy or any further documentation.
Payments can be made on a professional rata foundation from the $14 million settlement fund, that means the quantity every individual receives will depend upon the variety of legitimate claims filed and different court-approved deductions.
How can eligible shoppers file a declare?
Eligible shoppers can submit a declare on-line or by mail via the official settlement website. Those who obtained a settlement discover can file utilizing the Claim ID and PIN included with the discover, whereas others can full and mail a printable declare kind.
Claims have to be submitted on-line or postmarked by Aug. 24, 2026.
The settlement nonetheless requires remaining court docket approval. A listening to is scheduled for Oct. 2, 2026, and funds can be distributed provided that the settlement receives remaining approval and any appeals are resolved. Only Washington residents who obtained qualifying promotional emails are eligible to file a declare.
Reporter Anthony Thompson could be reached at ajthompson@usatodayco.com, or on X @athompsonUSAT
