What does the Costco auto-renewal lawsuit allege?

The complaint alleges Costco violated California's Automatic Renewal Law (ARL) by automatically renewing memberships without giving the required renewal notice within the legally mandated window and without clearly disclosing the renewal charge, terms, and how to cancel. The named plaintiff says his Gold Star membership was renewed for $65 in January 2026 after a notice that allegedly did not meet the ARL's timing and content requirements. These are unproven allegations.

What is California's Automatic Renewal Law?

California's Automatic Renewal Law requires businesses that automatically renew subscriptions or memberships to present the automatic-renewal terms clearly and conspicuously, get the consumer's affirmative consent, send certain renewal or price-change notices within defined windows, and provide an easy way to cancel. The suit alleges Costco's membership renewal practices fell short of those requirements.

Who could be covered by the Costco class action?

The complaint seeks to represent California Costco members whose memberships were automatically renewed without the notices the Automatic Renewal Law requires. No class has been certified, so the class definition is not final and could change. This case is separate from other Costco lawsuits, such as claims over tariffs or sales-tax practices.

Do I need to do anything right now?

No. Because this is a lawsuit and not a settlement, there is nothing to file and no deadline. If you are a California Costco member, you may want to keep your renewal emails and billing records in case a class is later certified or the case settles. If a claims process is ever created, it would be announced separately.

Costco Membership Auto-Renewal Class Action Lawsuit

Q: Is there a Costco membership settlement or refund yet?

No. George v. Costco Wholesale Corporation is a newly filed proposed class action, not a settlement. There is no settlement fund, no claim form, and no deadline. Costco has not been found liable, and there is nothing for members to claim right now.

Published July 6, 2026

If your Costco membership renewed on its own and you barely got a heads-up, this suit is about exactly that — whether Costco's renewal notices meet California's rules. There is nothing to claim yet.

A proposed class action alleges Costco's membership auto-renewals did not meet California's Automatic Renewal Law notice requirements.

By Steve Levine

Editor-in-Chief

▼ Allegations Only · No Settlement Yet

This article describes a class action complaint. The statements below are unproven allegations. Costco Wholesale Corporation has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.

What Is This About?

Costco is facing a proposed class action alleging that the way it automatically renews memberships violates California's consumer-protection rules for subscriptions. The case is captioned George v. Costco Wholesale Corporation and was filed in March 2026 in the U.S. District Court for the Northern District of California.

The named plaintiff, a California member, alleges his Gold Star membership was automatically renewed for $65 in January 2026 after Costco sent a renewal notice that, according to the complaint, did not comply with the timing and disclosure requirements of California's Automatic Renewal Law. Costco has not been found liable, and the claims remain unproven.

Status Complaint Filed Proposed class action · George v. Costco Wholesale Corporation · N.D. Cal. · Filed March 2026

Allegation Membership renewal notices did not meet California's Automatic Renewal Law Suit says a renewal notice fell outside the required window and omitted required charge, term and cancellation details

Can I Claim? No — nothing to claim yet No settlement, no fund, no claim form at this stage

What the Lawsuit Alleges

California's Automatic Renewal Law (ARL) is one of the country's stricter subscription-billing statutes. It generally requires businesses that auto-renew a membership to present the renewal terms clearly, obtain the customer's affirmative consent, send renewal or price-change reminders within specific time windows, and make cancellation straightforward.

According to the complaint, Costco's renewal notice to the plaintiff arrived roughly 60 days before his card was charged — outside the window the ARL requires for such notices — and allegedly failed to clearly disclose the amount of the renewal charge, the renewal terms, and how to cancel. On that basis, the suit alleges Costco violated not only the ARL but also California's False Advertising Law, the Consumers Legal Remedies Act, and the Unfair Competition Law. The plaintiff says he had been reconsidering the membership because he used it infrequently, and that a compliant notice would have let him make an informed choice before being charged. As with any complaint, these are allegations only; no court has found that Costco's renewal practices were unlawful.

Is There a Costco Settlement Yet?

No. This is a lawsuit, not a settlement.

That means there is no settlement fund, no claim form, no payout, and no deadline to act — and members do not need to do anything at this stage. The filing of a complaint is the start of a case, not the end. Costco has not been found liable simply because a lawsuit was filed. If the case is ever resolved through a settlement or a class is certified, a formal claims process with its own eligibility rules and deadlines would be announced separately. This case is also separate from other Costco lawsuits, such as the Costco Executive Rewards sales-tax class action.

Who Could Be Affected?

The complaint seeks to represent California Costco members whose memberships were automatically renewed without the notices the ARL requires. Because the case is at the complaint stage, the proposed class definition is not final and could change.

If you are a California Costco member, it may be worth keeping your renewal emails and billing statements in case a class is later certified or the case settles — that is the kind of record a claims process typically asks about. There is nothing to file right now.

What Happens Next?

From here, the case moves through the early stages of litigation. Costco may answer the complaint or move to dismiss, the parties may exchange information in discovery, and the plaintiff would eventually ask the court to certify the proposed class. Any of these steps can take months, and the case could be amended, narrowed, or resolved along the way.

Auto-renewal billing is an active enforcement area; OCA tracks many resolved subscription cases on its auto-renewal class actions page. OpenClassActions.com will continue watching the docket for major updates, including a motion to dismiss, class certification activity, or any future settlement or claim form.

Frequently Asked Questions

Is there a Costco membership settlement or refund yet?

No. George v. Costco Wholesale Corporation is a newly filed proposed class action, not a settlement. There is no fund, no claim form, and no deadline. Costco has not been found liable.

What does the lawsuit allege?

The complaint alleges Costco auto-renewed memberships without giving the renewal notice California's Automatic Renewal Law requires — outside the required window and without clearly disclosing the charge, terms, and how to cancel. The allegations are unproven.

Who could be covered?

California Costco members whose memberships were automatically renewed without ARL-compliant notices. No class has been certified, so the definition could change.

Do I need to do anything?

No. Because this is a lawsuit and not a settlement, there is nothing to file and no deadline. Keep your renewal emails and billing records. If a class is certified or a settlement is reached, a claims process and deadlines would be announced separately.

Sources

• Scripps News — "Costco faces legal challenge over membership renewal notices": Scripps News
• Market Realist — "Costco Hit With Lawsuit Over Automatic Membership Renewals": Market Realist
• California Automatic Renewal Law — California Business & Professions Code § 17600 et seq. (official California legislative text): California Legislative Information
• U.S. District Court, Northern District of California — docket for George v. Costco Wholesale Corporation, via CourtListener: CourtListener Docket Search

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Status Complaint Filed — Proposed Class Action

Case Title George v. Costco Wholesale Corporation

Court U.S. District Court, Northern District of California

Date Filed March 2026

Claims California ARL · False Advertising Law · CLRA · UCL

Official Court Page CourtListener Docket