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Shoppers in Washington state who have received certain promotional emails from Costco in the past five years may be eligible for cash payments under a proposed $14 million class action settlement.
The proposed settlement resolves a lawsuit alleging that Costco sent commercial emails with false or misleading subject lines advertising limited-time or last-minute sales, even though some promotions allegedly extended beyond stated deadlines. Plaintiffs alleged that the emails violated Washington state commercial email and consumer protection laws.
Costco denied the allegations and wrongdoing, but agreed to settle the lawsuit to avoid the cost, burden and uncertainty of continuing litigation. The settlement received preliminary approval in June, with a final approval hearing scheduled for October.
Here’s what consumers need to know:
What is the lawsuit about?
The lawsuit, originally filed in King County Superior Court in 2025, alleges Costco sent promotional emails to Washington consumers with misleading subject lines, creating a false sense of urgency.
According to the payment site, example emails included subject lines such as “Today is the last day to access members-only savings” and “Hot Buy for 5 days only.” Plaintiffs alleged that some of the advertised promotions continued past these deadlines, making the subject line misleading under Washington law.
Before agreeing to the settlement, both sides reviewed information about Costco’s email marketing practices, including the promotional emails at issue in the lawsuit, and reached an agreement in mediation in March 2026.
Who is eligible for payment?
The proposed settlement covers Washington residents who received covered commercial email sent by or on behalf of Costco between June 2, 2021 and July 7, 2026.
Eligible Class Members who submit a valid claim are not required to provide proof of purchase or additional documentation.
Payments will be made pro rata from the $14 million settlement fund, so the amount each person receives will depend on the number of valid claims filed and other deductions approved by the court.
How can eligible consumers make a claim?
Eligible consumers can submit claims online through the official payment website or by mail. Those who receive a settlement notice can submit it using the claim ID and PIN included in the notice, and others can fill out and mail a printable claim form.
Claims must be submitted online or postmarked by August 24, 2026.
The settlement still requires final court approval. A hearing is scheduled for October 2, 2026, and payments will only be distributed if the agreement is finalized and the appeal is resolved. Only Washington State residents who received qualifying promotional emails are eligible to submit a claim.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or X @athompsonUSAT.
