A California Costco member has filed a proposed class action accusing the retailer of violating the state’s Automatic Renewal Law, and the Costco auto-renewal lawsuit is now in early mediation with discovery still open. Russel George II sued Costco Wholesale Corp. on March 18, 2026, in the U.S. District Court for the Northern District of California, case number 3:26-cv-02369. He claims Costco sends membership renewal notices outside the window state law allows and forces members who signed up online to cancel by phone or in person.1Top Class Actions. Costco Hit With Class Action Over Unexpected Membership Renewals2PACER Monitor. George v. Costco Wholesale Corp.
What the Plaintiff Says Costco Did Wrong
George has held a Gold Star membership since 2023. In January 2026, Costco automatically renewed it at $65. According to the complaint, Costco emailed the renewal notice roughly 60 days before charging his card.3AL.com. Costco Hit With Another Class Action Lawsuit4Scripps News. Costco Faces Legal Challenge Over Membership Renewal Notices1Top Class Actions. Costco Hit With Class Action Over Unexpected Membership Renewals
The complaint also alleges the notice itself was incomplete: it did not spell out the specific renewal terms, the exact amount to be charged, or clear cancellation instructions, all of which the statute requires. George says a proper reminder would have prompted him to cancel rather than pay for another year.1Top Class Actions. Costco Hit With Class Action Over Unexpected Membership Renewals4Scripps News. Costco Faces Legal Challenge Over Membership Renewal Notices
The Cancellation Claim
The second thread of the case targets how Costco handles cancellations. Costco’s customer service page states that only the primary member can cancel a membership, and only by speaking with staff at a warehouse counter or calling the Member Services Center at 1-800-774-2678. There is no online cancellation option.5Costco Customer Service. How Can I Cancel My Costco Membership6Costco Customer Service. How To Cancel My Membership
George’s lawyers argue that because Costco lets people sign up online, California law requires it to let them cancel online too. Amendments that took effect July 1, 2025, require that consumers who enroll online be able to terminate a subscription “exclusively online, at will, and without engaging any further steps that obstruct or delay” the process.7NY Post. California Man Files Lawsuit Against Costco Over Sneaky Membership Renewal Requiring a phone call or a trip to the warehouse, the complaint says, does not meet that standard.8AOL. California Man Hits Costco With Class Action
Costco does let members manage auto-renewal settings online, including turning the feature on or off and updating a payment card. Managing auto-renewal is not the same as canceling the membership, and the lawsuit draws that distinction.9Costco Customer Service. How Can I Manage Membership Auto-Renewal Online
The Statutes Being Invoked
The complaint pleads violations of four California consumer statutes:1Top Class Actions. Costco Hit With Class Action Over Unexpected Membership Renewals
- The Automatic Renewal Law (Bus. & Prof. Code §17600 et seq.), for the timing and content of the renewal notice.
- The False Advertising Law, for allegedly misleading consumers about the renewal process.
- The Consumers Legal Remedies Act, for deceptive business practices tied to the membership program.
- The Unfair Competition Law, a broader statute covering unlawful, unfair, or fraudulent business acts.
George is seeking a jury trial, declaratory and injunctive relief, and damages for himself and a proposed class of similarly situated Costco members.
Where the Case Stands Now
An initial case management order was entered on March 25, 2026. On June 11, 2026, the court issued a scheduling order sending the parties to private mediation, to be completed within 90 days. Fact discovery closes on April 9, 2027, and any motion for class certification must be filed by May 21, 2027.2PACER Monitor. George v. Costco Wholesale Corp. Costco has not publicly commented on the lawsuit.7NY Post. California Man Files Lawsuit Against Costco Over Sneaky Membership Renewal
No class has been certified yet, so nothing has been decided on behalf of other members. Whether the case ends in a settlement, certification, or dismissal will depend on how mediation and discovery play out.
What California’s Auto-Renewal Rules Require
The Automatic Renewal Law was strengthened by amendments effective July 1, 2025. The rules that matter for this case:1010News. Costco Faces Legal Challenge Over Membership Renewal Notices
- Businesses must obtain affirmative consent to auto-renewal terms and keep proof of consent for at least three years, or one year after the contract ends, whichever is longer.
- For subscriptions of a year or more, a renewal reminder must be sent between 15 and 45 days before renewal. It must state that the subscription renews automatically unless canceled, identify the renewal term and cost, and explain how to cancel.
- If a consumer signed up online, the business must let them cancel entirely online, and must prominently display a “click to cancel” option.
- If a cancellation phone line is offered, calls must be answered promptly during business hours, and voicemail requests must be processed or returned within one business day.
Violations can carry civil penalties of up to $2,500 per occurrence, and consumers can sue under related state consumer protection laws. Those are the standards the George complaint measures Costco’s practices against.