Costco class action lawsuit settlement could earn affected customers $500

Costco customers could be in line for hundreds of dollars after the warehouse giant agreed to a proposed $14 million class-action settlement over allegations that it sent misleading promotional emails. 

The lawsuit claims Costco violated Washington state law by sending marketing emails advertising deals as temporary or time-limited, even though the retailer allegedly knew the promotions would later be extended. 

Eligible consumers who received the email between June 2, 2021, and July 7, 2026, could receive up to $500 for each qualifying message, and they do not have to be Costco members to submit a claim. 

The case, Michael Aaland v. Costco Wholesale Corporation, accuses the retailer of violating Washington’s Commercial Electronic Mail Act and Consumer Protection Act through allegedly false or misleading email subject lines. 

Examples cited in the settlement notice included subject lines such as “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.” 

Costco has denied the allegations but agreed to the $14 million settlement. The deal still requires final court approval, with a hearing scheduled for October 2. 

The settlement comes as Costco faces other proposed class-action lawsuits involving some of its most popular products.

Earlier this month, the retailer was accused of selling Orgain protein powders that allegedly contained toxic heavy metals and another accusing the retailer of misleading shoppers by labeling its $5 rotisserie chicken as preservative-free. 

Who qualifies for the Costco settlement?

To potentially qualify, consumers must have been Washington state residents when they received the emails and must have received at least one allegedly misleading promotional email sent by or on behalf of Costco between June 2, 2021, and July 7, 2026.

The email must also have been sent to an address appearing in Costco’s records, though customers do not need to be Costco members to be eligible.

Under Washington law, eligible recipients who submit valid claims could receive up to $500 for each email found to have violated the law. The actual payment will depend on whether the settlement receives final court approval following an October 2 hearing.

Claims can be submitted online through the settlement website or by mailing a completed claim form. Approved payments can be distributed through PayPal, Venmo, Zelle, or a mailed check.

Customers have until August 24 to file a claim. Those whose claims are approved would also give up their right to bring a separate lawsuit over the same allegations covered by the settlement.