Costco Settlement Offers Washington Shoppers Potential Cash Payout Over Misleading Emails

A proposed $14 million class-action settlement seeks to resolve the case Michael Aaland v. Costco Wholesale Corporation filed in King County Superior Court, Washington. —while the retailer allegedly intended to extend those promotions. The settlement received preliminary court approval in June 2026, with a final approval hearing scheduled for October 2, 2026.

Newsweek

Plaintiffs contend Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and the state Consumer Protection Act by creating a false sense of urgency in its marketing messages. Under CEMA, recipients may pursue statutory damages of $500 per unlawful email. The complaint asserts that Costco knowingly sent emails that advertised “temporary or time-limited promotions” despite plans to prolong the offers.

Newsweek

According to the settlement information compiled by ClassAction, a consumer qualifies for a payment only if:

Costco customers could receive cash under proposed $14 million class-action settlement: Check eligibility, payout details and more

• The individual received a commercial email sent by Costco or on Costco’s behalf;

Newsweek

• The recipient was a Washington resident at the time of receipt;

Costco customers could receive cash under proposed $14 million class-action settlement: Check eligibility, payout details and more

• The email was sent between June 2, 2021 and July 7, 2026; and

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• The address appears in Costco’s email-marketing records.

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Eligible claimants must file a claim by August 24, 2026. The $14 million fund will be divided among all valid claimants after deducting attorneys’ fees, administrative costs, and other court-approved expenses; the exact amount per claimant will depend on the total number of approved claims.

Newsweek

Costco has denied that it violated Washington law and maintains that its email practices complied with applicable requirements.

Newsweek

The litigation was originally filed on June 2, 2025 by Joseph Zydel, who was later replaced by Michael Aaland to avoid “administrative delays” linked to Zydel’s Chapter 13 bankruptcy plan. After the final approval hearing on October 2, 2026, the court will determine the settlement’s enforceability, and the $14 million fund will be made available to claimants who meet the outlined criteria.

Newsweek