Costco Hit with Lawsuit Over Membership Renewal Notices
A California man has filed a class-action lawsuit accusing Costco of violating the state auto-renewal law.
The suit centers on allegedly missing membership renewal notices required 15 to 45 days before expiration.
Allegations in the complaint
Plaintiff Russel George says he received no timely notice before his annual renewal.
He contends he does not use the membership enough to justify renewal and would have canceled.
Costco membership tiers and cancellation options
Costco sells a standard annual membership for $65 and an executive level for $130.
The company allows cancellations by calling a toll-free number or by visiting a warehouse.
State law on automatic renewals
California requires renewal notices be sent at least 15 days and no more than 45 days before expiry.
The law also mandates easy cancellation using the same method as enrollment or the method consumers commonly use.
Guidance from the attorney general
The California attorney general says businesses must offer a toll-free phone number or an email address for cancellations.
The office also requires other easy-to-use cancellation methods be available to consumers.
Federal rulemaking and court ruling
The Federal Trade Commission proposed national auto-renewal rules in 2024 under the Biden administration.
A federal appeals court struck down that rule in July 2025 over procedural concerns.
Proposed requirements
The FTC plan would have required cancellations to be at least as easy as enrollment.
It would also have required annual reminders and renewal confirmations for non-physical goods.
Case schedule and response
George’s case is scheduled for a preliminary hearing in June.
Filmogaz.com contacted Costco for comment.
Potential impact
If certified, the case could affect many California members.
It could change how retailers handle membership renewal notices going forward.
