Costco Agrees to $14 Million Washington State Email Settlement

Costco Wholesale Corp. agreed to a $14 million settlement to resolve a class action lawsuit, Aaland v. Costco Wholesale Corp., which alleged the company violated Washington state laws. The lawsuit claimed Costco sent commercial emails to residents between June 2, 2021, and July 7, 2026, using false or misleading subject lines to create a false sense of urgency. Specifically, the company allegedly advertised limited-time offers, such as "Today is the last day to access Member-Only Savings," that continued past the stated expiration dates.

These actions were cited as violations of the Commercial Electronic Mail Act and the Consumer Protection Act. Although Costco denied any wrongdoing or misconduct, the company established the $14 million fund for eligible residents.

Impacted customers have until August 24, 2026, to submit a claim form to receive a portion of the payout, opt out to retain their right to sue, or object to the agreement. Individual award amounts will be determined by the total number of valid claims filed. A judge is scheduled to hold a hearing for final approval of the settlement on October 2, 2026.