A California man has filed a class-action lawsuit against Costco. He alleges the warehouse retailer violated state law in how it notifies customers about automatic membership renewals.
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The plaintiff, Russel George, claims the company failed to provide renewal notices within the timeframe required under California’s Automatic Renewal Law. The statute mandates that businesses send notices at least 15 days before a subscription renews, and no more than 45 days.
According to the lawsuit, however, Costco instead sent its notice approximately 60 days before the renewal date.
George argues that the timing deprived him of critical information and the opportunity to cancel his membership before being charged. The complaint states that he would have opted out of renewal had he received notice within the legally required window.
The complaint claims, “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.”
Costco Sued After Sending Renewal Notice 15 Days Too Early
The lawsuit also alleges that Costco’s renewal communications lacked key details required by law. These include clear disclosure of renewal terms, the amount to be charged, and instructions on how to cancel. As a result, George claims he was unexpectedly charged $65 for a renewed annual membership in early 2026.
In addition to concerns about notification timing, the complaint raises questions about Costco’s cancellation process. While the company allows members to cancel by phone or in person, California law requires businesses to offer cancellation methods that match how customers signed up or commonly interact with the service, such as online or via email.
George’s legal action accuses Costco of violating multiple consumer protection statutes. This includes the state’s Automatic Renewal Law, False Advertising Law, and Unfair Competition Law. He is seeking damages as well as changes to the company’s renewal practices.
The case comes amid broader scrutiny of subscription-based business models and automatic billing practices.
Costco has not publicly responded to the allegations. A preliminary hearing in the case is scheduled for June 2026.