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Washington Costco email settlement wins final court approval
A King County judge approved a settlement requiring Costco to pay more than $14 million to resolve claims that some marketing emails sent to Washington residents had misleading subject lines. About 313,000 people submitted valid claims, out of roughly 3 million eligible shoppers.
Costco will pay more than $14 million under a class-action settlement over marketing emails sent to Washington residents, after a King County Superior Court judge granted final approval last week.
The agreement covers Washington residents who received Costco emails between June 2, 2021, and July 7, 2026. Roughly 3 million shoppers were eligible to seek payment. Court records show 313,275 valid claim forms had been submitted by the Aug. 24 deadline, and five class members objected to the settlement.
The settlement also requires Costco to pay more than $4.6 million in attorneys’ fees and $2,500 to Michael Aaland, the case’s lead representative. Any funds left over will go to the Seattle-based Legal Foundation of Washington. The available settlement details do not specify how much each claimant will receive.
The lawsuit alleged that Costco violated Washington’s Commercial Electronic Mail Act, which prohibits deceptive commercial emails, including messages with false or misleading subject lines. Plaintiffs argued that some emails misleadingly promoted a “last day” to access member-only savings and “Hot Buys” supposedly available for “5 Days Only.”
The case was first filed in June 2025, with Joseph Zydel as the original class representative. Costco has denied wrongdoing. Lawyers for the lead plaintiff and the company did not immediately respond to requests for comment, according to the report.
Other major retailers, including Old Navy and Macy’s, have also faced legal action under Washington’s law.