Costco’s $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

Costco has agreed to a $14 million settlement to resolve a class action alleging the warehouse chain sent Washington residents promotional emails with false or misleading subject lines, and eligible shoppers have until Aug. 24 to file a claim.

The case, Michael Aaland v. Costco Wholesale Corporation , is pending in King County Superior Court in Washington. The complaint alleges Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by advertising time-limited promotions in email subject lines, knowing it would extend those promotions past the stated deadline. Subject lines cited in the litigation included messages like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”

Costco denies any wrongdoing. The company maintains it complied with the law and agreed to settle only to avoid the cost and uncertainty of continued litigation. No court has decided whether Costco did anything wrong.

Who qualifies

You may be eligible if you meet all of the criteria, which include receiving at least one commercial email sent from or on behalf of Costco between June 2, 2021, and July 7, 2026, residing in Washington state at the time you received the email, and receiving it at an address that appears in Costco’s records.

If you got a notice about the settlement by email or mail, Costco’s records indicate you likely qualify, but even those who did not receive a notice may still be eligible if they meet the requirements.

How to claim

You don’t need receipts or any proof to file. The fastest way is online: Go to the court-approved website, washingtoncommercialemailsettlement.com , where you can file even if you don’t have a Claim ID.

If you’d rather mail it in, you can download a claim form, print it, fill it out, and send it to the settlement administrator. Either way, your claim has to be submitted online or postmarked by Aug. 24, 2026.

What to know about the payout

The exact amount is not yet set, and it could be modest. Washington law (CEMA) allows people to seek up to $500 for each misleading email they received, but the settlement itself does not promise anyone $500 per email.

Instead, the money will be split among everyone who files a valid claim. Costco is putting up $14 million. After attorney fees, court costs, and administrative expenses are deducted, whatever remains will be divided evenly among approved claimants.

That means the more people who file, the smaller each check—and the fewer who file, the bigger each check. Because no one yet knows how many claims will come in, no one can say exactly what the payout will be.

One more thing worth knowing: Doing nothing has consequences. If you’re a class member and don’t file a claim, you won’t get a payment. Once the settlement is final, you give up your right to bring your own lawsuit against Costco over these issues. To keep that right, you’d have to formally exclude yourself, or “opt out,” by the same Aug. 24 deadline.

For this story,  Fortune  journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.

This story was originally featured on Fortune.com

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