Some Costco customers in Washington state could soon receive a payment as part of a lawsuit settlement alleging the company violated the state’s anti-spam email law.
According to the lawsuit, Costco agreed to pay up to $14 million to Washington customers who received certain emails between June 2, 2021, and July 7, 2026. Costco was accused of sending misleading emails claiming promotions were available for a limited time. Examples included messages such as “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
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The lawsuit alleged the promotions continued after the advertised expiration dates, violating Washington’s Commercial Electronic Mail Act.
The law bars companies from sending misleading commercial advertisements by email. Until earlier this year, violations carried penalties of up to $500 per email.
After a wave of lawsuits against companies accused of violations, Washington lawmakers reduced the penalty to $100 per violation.
As part of the settlement, Costco did not admit wrongdoing.
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Washington customers have until Aug. 24 to decide whether to participate in the settlement. Customers who accept the settlement could receive a payment. They may also opt out and retain the right to file their own lawsuit or object to the settlement.
Customers who do nothing by Aug. 24 will not receive a payment and will give up the right to sue Costco over the claims.
A judge is scheduled to consider final approval of the settlement on Oct. 2.
