Costco members in Washington state who received certain promotional emails over the past several years may qualify for a cash payment after the retail giant agreed to settle a $14 million class action lawsuit alleging it sent deceptive marketing emails advertising limited-time offers.

The lawsuit claims Costco violated Washington’s Commercial Electronic Mail Act (CEMA), a state law governing commercial email advertising. Under the statute, consumers may be entitled to recover as much as $500 for each qualifying email. However, the amount each claimant ultimately receives from the settlement will depend on how many valid claims are filed.

Although Costco denies any wrongdoing, the company agreed to resolve the case, known as Aaland v. Costco Wholesale Corp., by paying $14 million.

The settlement covers Washington residents whose email addresses are on file with Costco and who received the promotional emails between June 2021 and July 2026.

Eligible individuals must submit a claim form no later than Aug. 24, 2026, in order to receive a share of the settlement proceeds.

According to the complaint, Costco allegedly violated state law by using email subject lines that suggested sales were about to expire even though the promotions were allegedly intended to continue beyond the advertised deadlines.

Among the examples cited in the lawsuit are the subject lines “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”

After attorneys’ fees, litigation expenses, and court-approved service awards are deducted, the remaining settlement funds will be divided equally among all class members who submit approved claims. Because the total number of valid claims is not yet known, the amount each person will receive has not been determined.

Regardless of how many qualifying emails they received, each eligible class member may file only one claim.

Consumers who do not wish to participate may opt out of the settlement or object to its terms by Aug. 24. Those who choose not to take any action will receive no payment and will forfeit the right to bring future legal claims against Costco over the allegations resolved by the settlement.

A final fairness hearing is scheduled for Oct. 2, 2026, at 3:30 p.m. Pacific Time in federal court in Seattle, where a judge will decide whether to grant final approval to the agreement.

If the settlement receives final approval, payments will be distributed by paper check or through electronic methods such as Venmo, PayPal, or other approved digital payment services.

{Matzav.com}