Costco customers have just hours left to claim from $14 million settlement
Costco has agreed to a $14 million settlement to resolved a class action lawsuit brought against the company alleging its warehouse chain sent misleading promotional emails.
Known as Michael Aaland v. Costco Wholesale Corporation, Case No. 25-2-16392-0 (Wash. Super. Ct. King Cnty.), a class action lawsuit was filed against Costco Wholesale Corporation alleging it violated Washington law by sending commercial electronic mail messages containing false or misleading subject lines to a certain demographic of people.
It accuses the retail company of breaching Washington's Commercial Electronic Mail Act and Consumer Protection Act specifically.
Examples of email subject lines include, as quoted by Fortune: "Today is the last day to access Member-Only Savings" and "Hot Buys available for 5 Days Only."
Advert
Costco has denied any wrongdoing, maintaining its emails were within state and federal laws, dismissing the lawsuit is grounded in any sort of fact or law.
However, Costco has since agreed to resolve the law suit on a class action basis.
If the settlement is approved by the court, Costco is set to dish out $14 million to certain customers.
But how do you know if you could be one of the customers able to cash in on the settlement?
Who qualifies for the Costco $14 million settlement
Well, the lawsuit specifically rallied in support of customers located in Washington.
Specifically, the 'Settlement class' are defined as: "All persons who received a commercial electronic mail message, and who were Washington residents at the time of the receipt of such commercial electronic mail message, that was transmitted by Costco Wholesale Corporation or someone acting on behalf of Costco Wholesale Corporation at any time from June 2, 2021, through July 7, 2026."
Washington Commercial Email Settlement notes the 'Final Approval Hearing' is currently scheduled to take place on October 2, 2026.
However, if you're a Washington resident who has been contacted by Costco's promotional emails during the above time frame, how can you go about making a claim?
How to claim part of the Costco $14 million settlement
The site details you must submit 'timely and valid Claim Forms' via its page if you're to be in with a chance of receiving a slice of the Costco settlement pie.
And this form must be filled in by August 24 - yes, that is today.
It notes the settlement payments will be 'equally distributed to all Settlement Class Members' who do so, 'after the deduction of settlement costs, attorneys' fees and expenses awarded by the Court, and any Service Award granted to the Class Representative'.
"Given that the number of class members who timely submit valid Claim Forms is unknown, it is impossible to determine the final estimated payment per claimant at this point," it adds.
However, The Post has hazarded a figure.
How much could you pocket as part of the Costco $14 million settlement?
Drawing on Washington law (CEMA) and how it allows people to seek up to $500 for each misleading email, the Post states claimants could be in with pocketing around $500 each.
Although, it's important to note this is all if the Final Approving Hearing approves the Settlement and makes it final.
And the settlement doesn't state it promises anyone $500 per email either, but would 'equally distribute' whatever sum is eventually landed on post deductions.
If things move ahead however, 'you will be issued a payment if (i) you are a member of the Settlement Class; and (ii) you file a valid Claim Form before August 24, 2026,' the site reminds.
The settlement warns: "Even if you do not file a Claim Form, your rights will be affected if you are a member of the Settlement Class and you do not exclude yourself from the Settlement."
So, there's four options you essentially have.
The four options as the next steps in the Costco $14 million settlement
Submit a claim by website, or by mail, exclude yourself from the settlement altogether - 'opting out' so to speak - or 'do nothing'.
If you do either of the former, you'll get a piece of the settlement but 'give up your right to bring your own lawsuit about the issues in this lawsuit'.
Should you opt out? You give up your right to the settlement, but 'retain any rights you may have to bring your own lawsuit about the issues in this Lawsuit'.
Or the fourth option? 'Do nothing' sees you not issued a Settlement payment and also give up your right to bring your own lawsuit in the future about the issues within the Lawsuit.
Poppy Bilderbeck