“Had the plaintiff been provided this notice in a timely manner, he would have canceled his membership and not gone forward with the auto-renewal,” states the complaint in a class-action lawsuit filed by Russel George against Costco Wholesale Corporation.
The lawsuit, which was initiated on April 12, 2026, in California, alleges that Costco failed to notify George adequately before automatically renewing his membership. According to the complaint, this oversight constitutes a violation of California’s consumer protection regulations, specifically the Automatic Renewal Law that mandates businesses to send renewal notices between 15 and 45 days prior to the renewal date.
George claims that Costco sent renewal notice emails 60 days before charging members’ credit cards, which he argues is not compliant with the law. “Due to Costco’s untimely and deficient auto-renewal notice, the plaintiff was deprived of information he was statutorily entitled to that would have notified him of the upcoming auto-renewal and provided him with methods of cancellation,” the complaint further elaborates.
The Automatic Renewal Law, which took effect in July 2025, was designed to protect consumers from unexpected charges by requiring clear communication about renewal terms. However, the lawsuit challenges Costco’s cancellation processes, asserting that they do not meet the legal requirements. While Costco members can cancel their memberships by calling a toll-free number or visiting a physical warehouse location, the lawsuit argues that the methods provided are insufficient.
Costco offers two membership tiers: a standard annual membership at $65 and an executive membership at $130. The complaint indicates that the renewal notice sent by Costco was missing essential information, such as the length and terms of the renewal, which is critical for members to make informed decisions.
The Federal Trade Commission had attempted to implement national ‘click-to-cancel’ rules in 2024, but these efforts were struck down in July 2025, leaving consumers reliant on state laws like California’s. The broader implications of this lawsuit reflect ongoing regulatory efforts in the subscription industry regarding auto-renewal practices.
The preliminary hearing for George’s case is scheduled for June 2026, where the court will examine the merits of the claims and determine the next steps. The lawsuit seeks declaratory and injunctive relief, damages for George and other class members, and a jury trial, potentially setting a precedent for how auto-renewal practices are handled in the future.
As the case unfolds, it raises important questions about consumer rights and the responsibilities of companies in notifying customers about automatic renewals. The outcome may influence not only Costco’s practices but also those of other businesses operating under similar subscription models.