Costco $14 million settlement for Washington email shoppers

Thousands of Costco shoppers in Washington state could receive a payment from a proposed $14 million class-action settlement over the retailer's promotional email marketing practices. The settlement, which received preliminary court approval, resolves a lawsuit alleging that email subject lines created a false sense of urgency about limited-time deals that were later extended. While Costco denies any wrongdoing, the company has agreed to establish the fund to resolve the case without admitting liability.

The lawsuit, filed in King County Superior Court in Washington, claims Costco violated the state's Commercial Electronic Mail Act and Consumer Protection Act. The complaint alleges that promotional emails used subject lines suggesting sales would end within a specific period, such as "Today is the last day to access Member-Only Savings" or "Hot Buys available for 5 Days Only," even though the company allegedly planned to continue the offers beyond those advertised deadlines. This practice, the plaintiffs argued, misled consumers.

Eligibility for a payment is limited to consumers who were Washington residents when they received a commercial marketing email from Costco or on its...