Source: Fortune
Summary
Costco has agreed to a $14 million settlement to resolve a class action lawsuit alleging the company sent Washington residents promotional emails with false or misleading subject lines. Eligible shoppers have until August 24 to file a claim. The lawsuit, Michael Aaland v. Costco Wholesale Corporation, alleged Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act. Costco denies any wrongdoing and agreed to settle to avoid the cost and uncertainty of continued litigation.
Our Reading
The numbers tell one story. Costco is settling for $14 million, but the exact payout to claimants is unknown. The company denies wrongdoing, but is settling to avoid further litigation. The settlement affects Washington residents who received promotional emails with allegedly misleading subject lines between June 2021 and July 2026. Claimants must file by August 24 to be eligible for a payment.
The announcement sounds familiar. Costco is just one of many companies facing lawsuits over allegedly misleading marketing practices.
Author: Evan Null
