Washington Costco Members May Be Eligible for Cash Payout in $14 Million Email Settlement

Washington state residents who are Costco members may receive a cash payment from a proposed $14 million class-action settlement. The settlement resolves allegations that the retailer sent promotional emails with misleading subject lines, and claimants have until the end of August to submit their paperwork.

The lawsuit of Michael Aland v. Costco Wholesale Corporation was filed in King County Superior Court. It alleges that Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and the state’s Consumer Protection Act. The company sent marketing emails with subject lines that created a false sense of urgency.

According to court filings, the lawsuit cites examples such as “today is the last day to take advantage of member-only savings” or “hot buys (special offers) are available for only 5 days,” even though the deadlines for these offers were allegedly extended. Under Washington law, recipients of unlawful commercial email messages can seek statutory damages of up to $500 per message.

Costco Email Settlement Overview

Who Qualifies for the Settlement

To be considered a member of the settlement class, an individual must meet certain criteria. Eligible claimants are residents of Washington state who received a commercial email from or on behalf of Costco between June 2, 2021, and July 7, 2026; this email was sent to an email address contained in Costco’s marketing records.

Settlement Potential Payout

Although the law allows for statutory damages of up to $500 per email, claimants should not expect to receive such a large amount. The $14 million settlement fund will be distributed among all eligible individuals who submit valid claims.

The final amount each person receives will depend on the total number of approved claimants, and deductions will be made for court-approved attorney fees, administrative costs, and applicable taxes. In similar large-scale class-action settlements in the past, individual payouts have ranged from just a few dollars to perhaps $20 or $30, depending on the number of participants.

Deadlines

The court has already granted preliminary approval to the settlement. The next key milestone is the ‘final fairness hearing,’ scheduled for October 2, 2026. At this hearing, the judge will determine whether the settlement is fair, reasonable, and adequate.

The deadline for submitting claims is August 24, 2026. Eligible consumers can file their claims through the official settlement website established by the court-appointed claims administrator. The website provides the necessary claim forms and detailed instructions for verifying eligibility.

How to Apply?

Eligible class members can submit their claim online through the official settlement claim portal before the August 24, 2026 deadline. The online application form allows claimants to file using a Claim ID and PIN if they received a settlement notice. Those who did not receive a notice can also submit a claim by selecting the option to file without a Claim ID and providing the requested information.

Official Claim Form: Washington Commercial Email Settlement Claim Form

Costco Denies Any Wrongdoing (recommended)

Costco has denied any wrongdoing or liability. The settlement agreement explicitly states the company’s position that it complied with all legal regulations regarding its email marketing. Costco agreed to the $14 million settlement solely to avoid the costs, distractions, and uncertainty associated with prolonged litigation. The court has not made any ruling that Costco engaged in illegal conduct.