Costco has agreed to a proposed $14 million class-action settlement over allegations that it sent Washington state consumers promotional emails with misleading subject lines suggesting limited-time offers that were later extended. While Costco denies any wrongdoing, the company agreed to settle the case to avoid the cost and uncertainty of continued litigation. 

The lawsuit claims certain marketing emails created a false sense of urgency with subject lines such as “Today is the last day” or “Hot Buys available for 5 Days Only,” even though the promotions allegedly continued beyond those deadlines. Plaintiffs argued the practice violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act. 

The settlement applies only to people who:

• Were Washington state residents between June 2, 2021, and July 7, 2026.
• Received qualifying promotional emails sent by or on behalf of Costco.
• Received those emails at an address contained in Costco’s records. Membership is not required to qualify. 

Eligible consumers must file a claim by August 24, 2026. The exact payment each person receives will depend on the number of valid claims submitted, although Washington law allows statutory damages of up to $500 per qualifying email under certain circumstances. A final court approval hearing is scheduled for October 2, 2026. 

For consumers, the case is a reminder that retailers’ “last chance” promotions may not always be as limited as they appear. Businesses across industries continue facing increased legal scrutiny over marketing practices that regulators believe create artificial urgency or mislead shoppers.

What to Watch Next

If the settlement receives final approval, it could encourage additional lawsuits targeting online marketing campaigns that rely on countdowns, limited-time offers, or scarcity tactics. Retailers may also become more cautious about how they advertise promotions to avoid similar legal challenges. 

JBizNews Desk | Issaquah, Washington

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