Costco Settles $14 Million Lawsuit Over Promotional Emails
Costco has agreed to a $14 million settlement resolving a lawsuit over misleading promotional email subject lines. Certain customers may be eligible for a payout.
Retail giant Costco has agreed to a $14 million settlement to resolve a class-action lawsuit alleging the company used misleading subject lines in its promotional emails. The lawsuit claimed that Costco sent emails to Washington state customers with subject lines that falsely advertised limited-time sales.
Costco has denied any wrongdoing but agreed to the settlement to avoid the costs and uncertainties of further litigation. The agreement releases Costco from all claims related to allegations of deceptive subject lines used in commercial emails, particularly concerning sales and promotions.
To be eligible for the settlement, individuals must have received at least one commercial electronic mail message sent from or on behalf of Costco between June 2, 2021, and July 7, 2026. They must also have been residents of Washington state at the time of receiving the message, and the message must have been sent to an address on record with Costco.
Examples of subject lines cited in the lawsuit include "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only." Eligible customers do not need proof of purchase to claim a cash payment. Claims must be submitted by August 24, 2026, through the official Costco Email Settlement website.