Costco Sued Over Automatic Membership Renewals: Lawsuit Alleges Renewal Notices Came Too Early

Costco is being sued over the way it handles automatic membership renewals.

A class action lawsuit filed in California federal court alleges Costco sends its membership renewal notices too early — 60 days before charging customers' credit cards — which falls outside the window required by California's Automatic Renewal Law. That law says companies need to send renewal notices at least 15 days but no more than 45 days before an annual membership renews.

The lawsuit was filed by Russel George, a Gold Star member who says he was reconsidering whether to keep his $65 annual membership because he wasn't shopping at Costco frequently enough. According to the complaint, George was surprised when Costco automatically renewed his membership in January 2026 and charged his card without what he considers adequate notice.

The lawsuit also alleges that Costco's renewal notices fail to include information required by California law, such as the length and terms of the renewal, the amount being charged, and instructions on how to cancel.

Costco currently has over 82 million paid members. The company offers two membership tiers: a $65 Gold Star membership and a $130 Executive membership. Members can cancel by calling a toll-free number or visiting a store.

The lawsuit accuses Costco of violating California's Automatic Renewal Law, False Advertising Law, Consumers Legal Remedies Act, and Unfair Competition Law. A preliminary hearing is scheduled for June.

There is no settlement yet, and no claims process is open at this time.

Download ClassyAction to stay updated on this lawsuit and get notified when the payout drops.