“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 class-action lawsuit, initiated in California, highlights serious allegations regarding the retailer’s auto-renewal practices and their compliance with state law.
The crux of George’s lawsuit revolves around Costco’s failure to notify him adequately before automatically renewing his membership. According to the complaint, Costco sent renewal notice emails 60 days prior to charging members’ credit cards, which is outside the legally mandated window. California law stipulates that businesses must provide notice of automatic renewals between 15 and 45 days before the renewal date.
George claims that due to Costco’s untimely and deficient auto-renewal notice, he 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 lawsuit challenges Costco’s cancellation processes, asserting they do not comply with California law. Members can cancel their memberships by calling a toll-free number or visiting a physical warehouse location, but the complaint suggests this may not be sufficient.
Costco offers two membership tiers: a standard annual membership at $65 and an executive membership at $130. The lawsuit seeks declaratory and injunctive relief, damages for George and other class members, and a jury trial. The complaint also alleges that the renewal notice was missing required information such as the length and terms of the renewal, which further complicates the situation for consumers.
The Automatic Renewal Law of California went into effect in July 2025, establishing a notice window for businesses before charging customers for annual renewals. This law was part of broader regulatory efforts in the subscription industry regarding auto-renewal practices, aiming to protect consumers from unexpected charges.
As the case unfolds, a preliminary hearing for George’s lawsuit is scheduled for June 2026. The implications of this case could resonate beyond Costco, potentially affecting how subscription services operate across California and possibly the nation.
“The time to cancel is long gone by the time the charge actually shows up,” one observer noted, emphasizing the urgency of the matter. Another added, “Sending one sixty days out, which is well past the point at which a member would consider taking action, serves more as a formality than a true warning.” These sentiments reflect growing frustration among consumers regarding auto-renewal practices.
