Costco’s $14 million email settlement: Who qualifies for up to $500 and how to file by Aug. 24
Key Takeaways
- •The lawsuit, Michael Aaland v. Costco Wholesale Corporation, is pending in King County Superior Court in Washington.
- •The complaint says Costco’s email subject lines overstated the length of promotions, citing examples such as “Today is the last day to access Member-Only Savings.”
- •Costco agreed to a $14 million settlement but denies any legal violation, and no court has ruled on the merits of the case.
- •People may qualify if they received at least one Costco commercial email between June 2, 2021, and July 7, 2026, while living in Washington and the email was sent to an address in Costco’s records.
- •Claims and opt-outs must be submitted by Aug. 24, 2026, and claimants do not need receipts or other proof to file.

Costco has agreed to a $14 million settlement to resolve a class action alleging that the warehouse chain sent Washington residents promotional emails with false or misleading subject lines. Eligible shoppers have until Aug. 24 to file a claim.
The case, Michael Aaland v. Costco Wholesale Corporation, is pending in King County Superior Court in Washington. The complaint alleges that Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by advertising time-limited promotions in email subject lines while knowing it would extend those promotions beyond the stated deadline. Subject lines cited in the litigation included messages such as “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Costco denies any wrongdoing. The company says it complied with the law and agreed to settle only to avoid the cost and uncertainty of continued litigation. No court has decided whether Costco did anything wrong.
The settlement matters because it involves email marketing practices that are common across retail and e-commerce, where subject lines are often used to drive urgency and open rates. Here, the legal dispute centers on whether those promotions matched the timing described in the emails, which is the issue Washington law addresses in the case.
Who qualifies
You may be eligible if you meet all of the following criteria: you received at least one commercial email sent from or on behalf of Costco between June 2, 2021, and July 7, 2026; you were living in Washington state when you received the email; and the email was sent to an address that appears in Costco’s records.
If you received a notice about the settlement by email or mail, Costco’s records indicate you likely qualify. However, people who did not receive a notice may still be eligible if they meet the requirements.
How to file a claim
No receipts or other proof are required to file. The fastest option is to submit a claim online at the court-approved website, washingtoncommercialemailsettlement.com, where you can file even if you do not have a Claim ID.
If you prefer, you can download a claim form, print it, complete it, and mail it to the settlement administrator. In either case, the claim must be submitted online or postmarked by Aug. 24, 2026.
What to know about the payout
The exact payment amount has not yet been determined and could be modest. Washington law (CEMA) allows people to seek up to $500 for each misleading email they received, but the settlement does not guarantee $500 per email.
Instead, the settlement fund will be divided among everyone who submits a valid claim. Costco is contributing $14 million. After attorney fees, court costs, and administrative expenses are deducted, the remaining amount will be split evenly among approved claimants.
That means the more people who file, the smaller each payment will be; the fewer who file, the larger each payment will be. Because the number of claims is not yet known, the final payout cannot yet be calculated.
Doing nothing also has consequences. If you are a class member and do not file a claim, you will not receive a payment. Once the settlement becomes final, you will give up your right to bring your own lawsuit against Costco over these issues. To preserve that right, you would need to exclude yourself, or “opt out,” by the same Aug. 24 deadline.
For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publication.
This story was originally featured on Fortune.com