Costco has agreed to a proposed $14 million class-action settlement to resolve allegations that it sent misleading promotional emails to customers. The lawsuit claims the warehouse retailer violated Washington state law by advertising deals as temporary or time-limited, even when the company allegedly knew these promotions would be extended.
The case, Michael Aaland v. Costco Wholesale Corporation, accuses Costco of violating Washington’s Commercial Electronic Mail Act and Consumer Protection Act through subject lines that were allegedly false or misleading. Examples cited in the settlement notice include phrases like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Under the terms of the proposed settlement, eligible consumers who received at least one of the allegedly misleading promotional emails between June 2, 2021, and July 7, 2026, could receive up to $500 per qualifying email. To be eligible, recipients must have been Washington state residents at the time they received the emails, and the messages must have been sent to an address appearing in Costco's records. Importantly, individuals do not need to be Costco members to submit a claim.
Costco has denied the allegations but reached the settlement agreement. The deal requires final court approval, with a hearing scheduled for October 2. If approved, payments can be distributed via PayPal, Venmo, Zelle, or check.
Customers have until August 24 to file a claim. By accepting payment from the settlement, claimants would relinquish their right to pursue separate legal action for the claims covered by this agreement.
This settlement comes as Costco is also facing other proposed class-action lawsuits related to its products, including accusations concerning Orgain protein powders allegedly containing heavy metals and claims that the retailer misled consumers by labeling its $5 rotisserie chicken as preservative-free.