“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 filed by Russel George against Costco Wholesale Corporation. This lawsuit, initiated in California, centers on allegations that Costco failed to adequately notify its members before automatically renewing their memberships, a practice that has raised significant concerns regarding consumer rights and compliance with state laws.
The crux of the lawsuit lies in the assertion that Costco did not adhere to California’s Automatic Renewal Law, which mandates that businesses must send notifications between 15 and 45 days prior to the renewal of a subscription or membership. George claims that Costco sent renewal notices a full 60 days before charging members’ credit cards, which he argues is insufficient and misleading.
George’s complaint highlights that the renewal notice sent by Costco lacked essential information, including the length and terms of the renewal. This omission, according to the lawsuit, deprived him and potentially other members of critical information they were entitled to under California 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 elaborates.
Costco members currently have the option to cancel their memberships by either calling a toll-free number or visiting a physical warehouse location. However, the lawsuit contends that these cancellation processes do not meet the requirements set forth by California law, which aims to protect consumers from unexpected charges.
The lawsuit is part of a broader movement addressing auto-renewal practices in the subscription industry, particularly following the Federal Trade Commission’s (FTC) attempt to implement national “click-to-cancel” rules in 2024, which were ultimately struck down in July 2025. This legal backdrop underscores the increasing scrutiny of subscription models and their compliance with consumer protection regulations.
Costco offers two membership tiers: a standard annual membership priced at $65 and an executive membership at $130. The implications of this lawsuit could extend beyond George, potentially affecting numerous Costco members who may have experienced similar issues with auto-renewal notifications.
A preliminary hearing for George’s case is scheduled for June 2026, where the court will consider the merits of the allegations. The lawsuit seeks declaratory and injunctive relief, as well as damages for George and other class members, and a jury trial. As this case progresses, it may set important precedents regarding the enforcement of consumer protection laws in the context of auto-renewal practices.
As the legal proceedings unfold, the outcome could have significant ramifications for Costco and its membership policies, particularly in how they communicate with consumers about auto-renewals. The time to cancel is long gone by the time the charge actually shows up, raising further questions about the fairness and transparency of such practices in the retail sector.
