Costco Shoppers Could Claim Cash From a $14 Million Settlement - Here's Who Qualifies

Certain consumers who were looking to get more out of their Costco membership may be eligible to claim a payout from a $14 million class-action settlement. The retailer has reached a settlement in a lawsuit alleging that Costco sent misleading promotional emails, and Washington residents who received those emails may be eligible for a payout. 

The deadline to submit a claim is approaching, so read on to see if you may qualify and put extra cash in your pocket.

What the lawsuit against Costco alleged

The Michael Aaland v. Costco Wholesale Corporation case was filed in Washington. It alleges that Costco violated the Washington Commercial Electronic Mail Act and Consumer Protection Act.

Reportedly, Costco sent commercial emails with deceptive subject lines. Those subject lines advertised limited-time offers to create a sense of urgency and prompt recipients to take advantage of the offers, even though Costco had decided to extend the offers past the expiration dates that were being advertised. For example, some of the subject lines referenced by the settlement included "Hot Buys available for 5 Days Only" and "Today is the last day to access Member-Only Savings" messages.

Costco denied any wrongdoing but agreed to the $14 million settlement to avoid the cost of continued litigation.

Who may be eligible to receive a settlement payment

Individuals who received a commercial email from Costco between June 2, 2021, and July 7, 2026, may be eligible for a payment. Because the lawsuit centers around a violation of Washington law, individuals must have been Washington residents at the time when they received the emails.

Additionally, the email must have been sent to an email address in Costco's records. Individuals do not have to have been Costco members to be eligible for a payment.

How settlement payments work

According to Washington's Commercial Electronic Mail Act, qualifying recipients may receive up to $500 per qualifying email that they received. However, that figure isn't guaranteed. Claimants may receive a pro rata portion of the $14 million settlement fund, meaning the amount that each individual receives depends on how many people file eligible claims, and the cost of attorneys' fees, administration costs, and other expenses, which are to be deducted from the total settlement.

How to submit a claim

Participation in the settlement isn't automatic, and eligible individuals must submit a claim to potentially receive a payment. You may file a claim form on the official settlement website or by mail.

All forms must be filed by August 24, 2026.

How to exclude yourself from the settlement

If you are a member of the settlement class and the settlement becomes final, you may not bring your own lawsuit about these email marketing issues against Costco. If you wish to opt out, you must submit a written request including your name, address, telephone number; a statement confirming you wish to exclude yourself; the case name and number; and your signature and the date. You may email or mail the request, and requests must be submitted by August 24, 2026.

When to expect a payment

Payments may only be issued once the settlement is final, and a final approval hearing is scheduled for October 2, 2026. During that hearing, the court may consider any objections, and the court may decide whether to approve the settlement after the hearing. It's unknown how long the decision may take or when approval may be granted, so no timeline for issuing payments has been announced.

A warning about class-action settlement scams

Scammers sometimes send fake class-action settlement notices in an attempt to capture your personal or financial information. If you receive a notice informing you that you're part of a class-action settlement, start by looking up the settlement website on your own to verify the information is the same as what's contained in the notice you received.

Look out for common red flags that might signal that you're being scammed, too. If a claim administrator asks for your Social Security number or bank account information, you should be suspicious. Administrators should never ask for processing fees, filing fees, or any other sort of upfront payment in order to be able to send you a settlement payment.

Bottom line

If you believe you're eligible for the Costco class-action settlement, you must submit a claim by August 24, 2026, and may receive a payment after the final approval hearing on October 2, 2026. 

It's always important to be wary of marketing pushes that prompt you to quickly take action or miss out on a special offer, so shop with caution. Costco frequently offers sales and deals on in-demand items, and by comparison shopping and watching for deals, you may be able to save money on groceries and other items you need by shopping at membership clubs like Costco.