Costco has agreed to a 14 million dollar settlement resolving a class action lawsuit that accused the retailer of sending promotional emails with misleading subject lines, according to court filings reported this week. The lawsuit centered on messages such as “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only,” which plaintiffs said falsely implied urgency for offers that were later extended past their advertised expiration dates.

The case, Aaland v. Costco Wholesale Corporation, was filed in King County Superior Court under case number 25-2-16392-0 SEA by lead plaintiff Michael Aaland. The lawsuit alleged the practice violated Washington state’s Commercial Electronic Mail Act and its Consumer Protection Act, both of which restrict deceptive or misleading commercial email practices aimed at state residents. A judge granted the settlement preliminary approval on June 23.

The settlement covers Washington state residents who received a commercial email from Costco between June 2, 2021 and July 7, 2026. Eligible members can file a claim online, with no proof of purchase or email receipt required, ahead of a submission deadline of August 24. Payouts are expected to be capped at up to 500 dollars per claimant and distributed on a pro rata basis, meaning the final amount each person receives will depend on how many valid claims are filed by the deadline.

A court hearing to grant final approval of the settlement is scheduled for October 2, and payouts will begin only after that approval and any appeals are resolved. Costco has not publicly admitted wrongdoing as part of the settlement, a common feature of class action resolutions of this kind, and the company has not issued a detailed public statement beyond confirming the terms outlined in the court filings. Class members can also submit claims and review the full settlement terms through a dedicated notice website set up as part of the case, which lays out eligibility rules and the claim form process in more detail than the court filings alone.