Costco Shoppers In This State Could Get A Check From A $14 Million Settlement

If you're a Costco shopper in Washington state, you could soon receive a payout from a settlement. A lawsuit filed in King County Superior Court in June 2025 alleged that the company violated Washington state's Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by sending out promotional emails with misleading subject lines. Costco has agreed to pay a $14 million settlement but denied any wrongdoing. The court must now decide whether it will approve Costco's proposed settlement. If it does, eligible customers may be awarded up to $500 per email they received.

The suit alleges Costco sent emails between June 2, 2021, and July 7, 2026, with misleading subject lines such as "Today is the last day to access Member-Only Saving" or "Hot Buys available for 5 Days Only." It doesn't rise to the level of some of Costco's worst controversies, but it's not a good look for them. The suit alleges the subject lines were advertising limited-time promotions, when Costco knew the promotions would be extended. According to the Commercial Electronic Mail Act, any company is prohibited from including false or misleading information in the subject line of a commercial email.

Washington residents may qualify if they received an email between the specified dates and were living in the state at that time. Your email address also has to be in Costco's records. Eligible customers have until August 26, 2026 to file a valid claim and don't need to provide proof that they bought anything. While it's been suggested each email could be worth up to $500, the payout will ultimately depend on how many people file valid claims.

Although both sides have agreed to this settlement, the court's approval is still required. The $14 million common fund will cover all fees and expenses associated with the class action. Under the proposed settlement, up to $4.6 million could go to attorneys' fees and other expenses, leaving about $9.3 million for class members, subject to court approval.

The statute allows eligible consumers to receive $500 or actual damages, whichever is greater, if a company is found to have violated the law. However, because Costco is settling the case without admitting fault, the court will not determine whether the company violated the statute. This means individual payments could be less than $500 because claimants will receive a share of whatever remains after various fees and expenses. This is similar to the terms of Trader Joe's class action suit earlier this year where the company settled without admitting fault. 

Most class action suits settle, and this could be the reason Costco agreed to the settlement in the first place. It allows Costco to pay out less than it otherwise might have to. The settlement notice explicitly says that Costco denies wrongdoing. 

This is not the only class action Costco has faced in 2026. The company was also accused of misleading customers about preservatives in its rotisserie chicken, though Costco has more aggressively challenged those allegations. Costco is fighting the rotisserie chicken lawsuit, which the company's lawyer has called "fatally flawed," per the Seattle Times. Unlike that case, the email settlement could result in payments for eligible Washington customers, so if you received one of the promotional Costco emails, be sure to file your claim before the deadline.