Costco Hit With Lawsuit Over Automatic Membership Renewals
Costco is being sued as part of a class action lawsuit over claims that it violated California law by sending untimely and deficient renewal notices.
April 9 2026, Updated 10:48 a.m. ET
Living in the 21st century means setting up at least one subscription that you inevitably forget about. California has enacted an Automatic Renewal Law designed to ensure that users don't end up paying over and over for subscriptions they've forgotten about.
In a new class-action lawsuit, customers are suing Costco, claiming that it violated this law. Here's what we know about the lawsuit, and what the plaintiffs are claiming.
Costco is being sued over its automatic renewal procedures.
Plaintiff Russel George is arguing that Costco sends a notice to customers 60 days before their cards will be automatically charged for renewal, which is outside of the 45-day window around renewal that the Automatic Renewal Law allows for.
“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 lawsuit says.
The lawsuit also claims that Costco's reminder notification does not include key information that is required by the law, including the length and terms of the renewal, the amount that will be charged, or any way to actually cancel the renewal.
George claims that he was surprised to learn that his Gold Star membership to Costco had been renewed in January of 2026.
His card was charged $65, even as he was considering whether he should retain the membership because of how infrequently he shopped there.
“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,” the lawsuit argues.
In addition to violating the ARL, the lawsuit also claims that Costco has violated California's False Advertising Law, the Consumers' Legal Remedies Act, and the Unfair Competition Law.
Automatic renewals are almost universally despised.
Because so many things operate on subscriptions now, keeping track of everything you're paying for over the course of a given year can feel almost impossible. Automatic Renewal Laws like California's are designed to help, and they also give individuals a way to sue corporations that are not in compliance.
Ultimately, though, these laws can only do so much as long as users sign up for subscriptions.
Costco is one of the biggest retailers in the United States, and faces lawsuits regularly from customers over everything from the quality of its food to its compliance with laws like these.
George is demanding a jury trial to determine whether the company is in violation of the law.
Until that trial is held, we won't know for sure whether the company is guilty or innocent, or what reparative fees they might be forced to pay if it is found to have violated the law.
Ultimately, though, this case is designed to enforce a law that already exists. If Costco is found to be at fault, it seems likely they will have to change how they notify their subscribers about upcoming renewals going forward.