Costco customers could receive cash under proposed $14 million class-action settlement: Check eligibility, payout details and more

Some Costco customers in Washington state could receive a cash payment under a proposed $14 million class-action settlement that resolves allegations the retailer sent misleading promotional emails advertising limited-time offers, reported NewsWeek.

The lawsuit, Michael Aaland v. Costco Wholesale Corporation, was filed in King County Superior Court in Washington. According to court filings, Costco allegedly violated the state's Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by sending marketing emails with subject lines promoting supposedly time-limited deals that the company allegedly knew would later be extended.

Who is eligible for a payment?

According to ClassAction, consumers may qualify for a payment if they:

• Received a commercial marketing email sent by Costco or on its behalf.
• Were Washington state residents when they received the email.
• Received the email between June 2, 2021, and July 7, 2026.
• Received the email at an address included in Costco's email marketing records.

How much could consumers receive?

The lawsuit says Washington's Commercial Electronic Mail Act (CEMA) allows recipients to seek $500 in statutory damages for each unlawful commercial email. However, eligible consumers will not automatically receive $500 per email under the proposed settlement. The final payout will depend on the number of valid claims submitted and the terms of the court-approved settlement.

Instead, the proposed settlement establishes a $14 million fund that will be shared among eligible consumers who submit valid claims. The amount each claimant receives will depend on the total number of approved claims, after deductions for attorneys' fees, administrative costs and other court-approved expenses.

Consumers must submit their claims by August 24, 2026, to be eligible for a payment under the proposed settlement.