In a recent development, retail giant Costco is facing a class-action lawsuit in Washington state for allegedly sending misleading promotional emails. Despite Costco denying any wrongdoing, the company has agreed to pay $14 million to settle the case. Residents of Washington state who meet the criteria can file claims by the deadline of August 24.
The lawsuit, known as “Aaland v. Costco Wholesale Corp.,” accuses Costco of violating Washington state’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act. The plaintiffs claim that Costco’s marketing emails used deceptive subject lines to create a sense of urgency, such as:
– “Today is the last day to access Member-Only Savings”
– “Hot Buys available for 5 Days Only”
The plaintiffs argue that Costco’s intention was to extend the promotions beyond the advertised deadline when sending these emails.
To be eligible for compensation, individuals must meet the following criteria:
Residency Requirement:
Must have been a resident of Washington state when receiving the emails.
Time Range:
Between June 2, 2021, and July 7, 2026.
Email Type:
Received at least one misleading commercial promotional email from Costco or its representatives, with the email address being in Costco’s system records.
Membership Status:
Not required to be a Costco member, just need to have received a qualifying email to apply.
Important Notes:
Each class member can only submit one claim form, regardless of the number of qualifying promotional emails received.
Under the CEMA regulations of Washington state, recipients of each non-compliant email can seek up to $500. The funds are expected to be distributed via electronic payment platforms (such as PayPal, Venmo, Zelle) or mailed paper checks.
After deducting approved attorney fees, litigation costs, and service incentive awards, the net amount of the $14 million settlement will be evenly distributed among all valid claimants. Therefore, the actual amount received by each individual will depend on the total number of applicants.
The deadline for claim submissions is August 24, and individuals can choose to opt-out of the settlement by this date to retain the right to pursue an independent lawsuit or raise objections.
A hearing to determine the final approval of the settlement is scheduled for October 2, 3:30 PM Pacific Time in Seattle.
Failure to take any action by August 24 for eligible individuals will result in the forfeiture of any compensation and the right to file future legal actions against Costco regarding this case.