The retailer resolves a class action lawsuit alleging misleading subject lines in promotional emails sent to Washington state residents.
Costco has agreed to a $14 million settlement to end a class action lawsuit accusing the company of sending misleading promotional emails to Washington state residents. The lawsuit alleged violations of Washington’s Commercial Electronic Mail Act and Consumer Protection Act, citing subject lines that falsely advertised limited-time deals extended beyond their stated expiration dates.
The settlement covers emails sent between June 2, 2021, and July 7, 2026, to Washington residents, regardless of Costco membership status. Claimants are eligible for a pro rata share of the settlement fund without needing to provide purchase documentation. Preliminary court approval was granted on June 23, 2026, with a final hearing set for October 2, 2026.
Costco denied any wrongdoing but opted to settle to avoid litigation costs and uncertainty. The company has not commented further on the matter.