Costco lawsuit settlement: $14M email payout explained
Costco has agreed to a proposed $14 million costco lawsuit settlement covering Washington residents who received certain promotional emails between June 2, 2021, and July 7, 2026. Eligible shoppers who file a valid claim by Aug. 24, 2026, may receive a pro rata cash payment if the court grants final approval.
Key Takeaways
- Costco agreed to a $14 million settlement over allegedly misleading promotional email subject lines.
- Washington residents who got qualifying Costco emails from June 2, 2021, through July 7, 2026, may be eligible.
- No proof of purchase is required; claims are due by Aug. 24, 2026.
- Payouts are pro rata from the settlement fund, so individual amounts are not fixed yet.
- A final approval hearing is scheduled for Oct. 2, 2026.
What is the Costco lawsuit settlement about?
The case, filed in King County Superior Court in 2025, alleged Costco sent Washington consumers commercial emails with false or misleading subject lines. Those lines advertised limited-time sales or last-day offers, plaintiffs said, even though some promotions allegedly continued past the stated deadlines.
Plaintiffs claimed the messages violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act. According to USA Today, examples included subject lines such as “Today is the last day to access Member-Only Saving” and “Hot Buys available for 5 Days Only.”
Costco denied the allegations and any wrongdoing but agreed to settle to avoid the cost, burden, and uncertainty of further litigation. The proposed deal received preliminary approval in June.
Who qualifies for a payment from the costco lawsuit settlement?
Eligibility is limited. You must have been a Washington resident when you received a qualifying commercial email sent by Costco, or on its behalf, between June 2, 2021, and July 7, 2026. Inc. also notes the message address must appear in Costco’s records.
Eligible class members who submit a valid claim do not need proof of purchase or other documentation. Payments will be made on a pro rata basis from the $14 million fund after court-approved deductions, so the cash each person receives depends on how many valid claims are filed.
That means headlines promising a fixed windfall can oversell the math. The per-person settlement amount is currently unspecified.
How do you file a claim before the deadline?
Consumers can submit a claim online or by mail through the official settlement website. People who received a notice can use the Claim ID and PIN included with it; others can complete and mail a printable claim form.
Claims must be submitted online or postmarked by Aug. 24, 2026. The settlement still needs final court approval at a hearing scheduled for Oct. 2, 2026. Payments go out only if the agreement is finally approved and any appeals are resolved.
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