Costco Faces Class-Action Lawsuit Targeting Membership Practices

A California resident has filed a class-action lawsuit against Costco, alleging violations of state auto-renewal rules. The plaintiff, Russel George, says the retailer failed to provide required renewal notice.

Allegations and membership details

George holds a Costco membership but says he does not use it enough to justify renewal. Costco currently offers a standard annual membership for $65 and an executive tier for $130 per year.

Notice timing at issue

California law requires businesses to send renewal notices between 15 and 45 days before annual memberships expire. The complaint asserts Costco did not meet that timing and that George would have canceled if notified on time.

Cancellation options and state requirements

Costco allows members to cancel by calling a toll-free number or visiting a warehouse in person. The complaint challenges whether those options meet state law obligations.

Required cancellation channels

The California statute demands consumers may cancel using the same communication method used to enroll. The Attorney General’s guidance also requires a toll-free phone number, email, or other easy-to-use cancellation method.

Federal regulatory backdrop

In 2024, the Federal Trade Commission proposed nationwide auto-renewal rules. The proposal would have required cancellation to be as easy as enrollment, including one-click options and annual renewal confirmations for non-physical goods.

A federal appeals court struck down that FTC rule in July 2025. That ruling leaves state laws like California’s as the primary regulatory tool for renewals.

Next steps in the litigation

The case is set for a preliminary hearing in June. Observers say the outcome could affect how retailers handle membership communications and broader membership practices.

Filmogaz.com will follow developments and report updates as the case moves forward. The lawsuit highlights growing scrutiny of auto-renewal processes and consumer protections.