Costco Agrees to $14M Settlement Over Alleged Misleading Email Promotions
Costco Wholesale has agreed to a $14 million settlement in response to allegations that it sent misleading promotional emails with false deadlines for Washington residents. The lawsuit, filed under the state's Commercial Electronic Mail Act and Consumer Protection Act, claims Costco advertised time-limited promotions while knowing they would be extended later. Examples include subject lines like 'Today is the last day to access Member-Only Saving' or 'Hot Buys available for 5 Days Only.' The settlement does not imply an admission of guilt by Costco, which has denied wrongdoing and maintained compliance with applicable laws. Washington residents who received these emails between June 2021 and July 2026 may be eligible to claim a portion of the settlement if they submit valid claims before August 24, 2026. The case was filed in June 2025 after Costco sought dismissal but failed. Mediation led to this proposed resolution without court judgment against the company.
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Topics: consumer protection email marketing lawsuit settlement