Full Breakdown
Costco Agrees to $14 Million Settlement Over Misleading Promotional Emails
7/25/2026, 1:11:31 PM
Background and Lawsuit
In 2025 plaintiffs filed a class-action suit in King County Superior Court alleging that Costco Wholesale Corp. sent Washington-resident shoppers commercial emails with subject lines that created a false sense of urgency. The complaint claimed the emails violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act by promoting “limited-time” deals that continued beyond the advertised deadlines.
Settlement Details
Costco has agreed to a $14 million settlement fund. The settlement covers anyone who was a Washington resident and received a qualifying commercial email from Costco—or on its behalf—between June 2 2021 and July 7 2026. The court gave preliminary approval on June 23 2026, and a final approval hearing is scheduled for October 2 2026. Eligible class members may file a claim online or by mail; a Claim ID and PIN are provided in settlement notices, and those without a notice can download a paper form from the court-approved website. The deadline to submit a claim is August 24 2026. Payments will be made on a pro-rata basis after the court grants final approval and any appeals are resolved; the exact amount each claimant receives will depend on the total number of valid claims and court-approved deductions.
Official Positions
Costco has denied the allegations and any wrongdoing, stating that it settled to avoid the cost, burden, and uncertainty of continued litigation. Plaintiffs maintain that the email subject lines were misleading under Washington law and that the settlement provides restitution to affected shoppers.
What’s Next
After the October hearing, the court will issue a final order; only then will the settlement fund be distributed to claimants. Costco is simultaneously facing an unrelated proposed class action over its Orgain protein powders, but that case remains unresolved and is not tied to the email settlement. Consumers who qualify should submit their claims by the August deadline to be considered for a share of the $14 million fund.
