Costco shoppers may qualify for a cash payout over misleading deal emails
Costco might be about to give some shoppers the ultimate warehouse deal: up to $500 per misleading promotional email. And you don't even need to be a Costco member.
The warehouse giant has agreed to a proposed $14 million settlement in a class-action lawsuit accusing it of sending Washington residents marketing emails with subject lines that made certain deals sound like they were about to disappear when, allegedly, Costco already knew those promotions would continue.
Costco denies the allegations. The settlement still needs final court approval. But if you have been living in Washington and Costco has been filling your inbox with messages like “Today is the last day,” you may want to check your email history.
Apparently, “last chance” does not always mean last chance
The lawsuit, Michael Aaland v. Costco Wholesale Corporation, was filed in Washington, where Costco is headquartered. The case alleges that Costco violated Washington's Commercial Electronic Mail Act and Consumer Protection Act by sending promotional emails advertising temporary or time-limited deals that were later extended.
The court-approved notice specifically points to subject lines including “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Under the proposed settlement, eligible recipients who submit a valid claim could potentially receive $500 for each email message sent in violation. But don't start mentally spending your Costco settlement just yet. Let's get fully briefed on the situation first.
You don't even have to be a Costco member
You don't need a Costco membership to qualify. You do, however, need to meet the lawsuit's eligibility requirements. You must have been a Washington resident when you received the allegedly offending email, and the email must have been sent from Costco or on Costco's behalf to an email address contained in Costco's data.
The relevant period runs from June 2, 2021, through July 7, 2026. So if you have lived in Washington during that period and Costco has been emailing you, it's worth digging through your inbox before assuming you're out of luck.
There is a deadline
If you think you qualify, you have until August 24, 2026, to file a claim. You can submit the claim online through the settlement website or print the form and send it by mail.
If your claim is approved and the settlement ultimately gets court approval, potential payments can be distributed through PayPal, Venmo, Zelle, or a mailed check. The final approval hearing is scheduled for October 2, 2026.
You may want to check your inbox
If you are a Washington resident who has received Costco marketing emails since 2021, your inbox may be worth checking. Search for Costco emails and look for promotional messages with urgent-sounding expiration language. You may have deleted them years ago, but your inbox could still have the receipts.
In all of this, you should keep in mind that as with many class action settlements, accepting a payout comes with a trade-off. According to the court-approved notice, if your claim is approved and the settlement receives final approval, you will give up your right to bring your own lawsuit over the issues covered by this case.
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