Costco has proposed a $14 million settlement in Michael Aaland v. Costco Wholesale Corporation over allegations that certain marketing emails to Washington residents used misleading subject lines. Washington residents who received qualifying emails between June 2, 2021 and July 7, 2026 may be eligible for $500 per violating email if they file a claim by August 24, 2026. The settlement is subject to court approval at a fairness hearing on October 2, 2026, and approved claimants will release related claims against Costco.
Costco Agrees to Proposed $14M Settlement — Washington Residents Could Get $500 Per Violating Email
Credit: Allrecipes / Costco
Costco has reached a proposed $14 million settlement in the class action titled Michael Aaland v. Costco Wholesale Corporation, resolving claims that the company sent marketing emails to Washington residents with allegedly misleading subject lines. The settlement remains subject to court approval.
The lawsuit alleges violations of Washington's Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act (CPA). Plaintiffs say certain Costco emails advertised temporary or time-limited promotions while Costco allegedly knew those promotions would be extended beyond the stated time frame. Sample subject lines cited in the court notice include "Today is the last day to access Member-Only Saving" and "Hot Buys available for 5 Days Only."
Who May Be Eligible
To qualify for a potential payment you must have:
- Been a Washington state resident at the time the emails were sent (the notice covers messages sent from June 2, 2021 through July 7, 2026);
- Received one or more marketing emails sent "from or on behalf of Costco" to an email address that appears in Costco's records; and
- Filed a timely claim by the deadline of August 24, 2026.
Potential Payment And What You Give Up
Under the proposed settlement and CEMA, eligible claimants may receive up to $500 for each email message found to have been sent in violation. Costco denies the allegations but agreed to the settlement to avoid further litigation. If your claim is approved and the court grants final approval at a fairness hearing on October 2, 2026, you will release the claims covered by the lawsuit and give up the right to bring a separate lawsuit on these same issues.
How To File A Claim
Claims can be submitted online through the class action website or by printing and mailing the claim form. Potential payments may be distributed via PayPal, Venmo, Zelle, or by check mailed to claimants. The court-approved notice provides full instructions and the required deadlines.
Questions? Call the Settlement Administrator at 888-808-6247 or Class Counsel at 206-746-2337.
This notice appeared in connection with the report originally published on Allrecipes. The proposed settlement is subject to final court approval and any amounts paid will depend on the number of approved claims and court orders.
Help us improve.
