“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, centers on the retailer’s alleged failure to comply with state laws governing automatic membership renewals.
The crux of George’s argument lies in the assertion that Costco did not adequately notify him before automatically renewing his membership. Under California’s Automatic Renewal Law, businesses are required to send notifications between 15 and 45 days prior to the renewal date. However, George claims that Costco sent renewal notice emails a full 60 days before charging members’ credit cards, which he argues is not only excessive but also misleading.
California’s law is designed to protect consumers from unexpected charges, ensuring they have ample opportunity to cancel if they choose. The complaint further alleges that Costco’s renewal notices lacked essential information, such as the length and terms of the renewal, thereby depriving members of the information they are statutorily entitled to receive. As George points out, “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.”
Costco’s membership structure includes a standard annual membership priced at $65 and an executive membership at $130. Members can cancel their memberships by either calling a toll-free number or visiting a physical warehouse location. However, George’s lawsuit challenges the effectiveness of these cancellation processes, suggesting they do not align with California’s legal requirements.
The lawsuit is part of a broader regulatory effort addressing auto-renewal practices across various subscription services. In 2024, the Federal Trade Commission attempted to implement national “click-to-cancel” rules, which were ultimately struck down in July 2025. This ongoing legal landscape highlights the increasing scrutiny on how companies manage automatic renewals and consumer notifications.
The preliminary hearing for George’s case is scheduled for June 2026, and the lawsuit seeks declaratory and injunctive relief, as well as damages for George and other class members. The outcome of this case could have significant implications for Costco and other businesses employing similar auto-renewal practices, as it may set a precedent for compliance with consumer protection laws.
As the legal proceedings unfold, the implications for Costco and its members remain to be seen. The case underscores a critical consumer rights issue, especially in an era where subscription services are increasingly prevalent. The statement, “The time to cancel is long gone by the time the charge actually shows up,” encapsulates the frustrations many consumers feel regarding auto-renewal policies.
