Costco is facing a new proposed class action lawsuit accusing the retail giant of violating California’s Automatic Renewal Law by failing to give members proper notice before charging them for another year of membership. The Costco auto renewal lawsuit was filed in March 2026 and centers on a renewal email that, according to the complaint, arrived far outside the legally required notice window.

The case matters because Costco has more than 130 million cardholders worldwide, and if the allegations hold up, the practices described in the complaint could have touched a large share of California’s membership base. The lawsuit also invokes several of California’s toughest consumer protection statutes, which allow for statutory damages on top of refunds.

In this article, you’ll learn what the Costco auto renewal lawsuit actually alleges, whether you might qualify if the case becomes a certified class action, what a potential payout could look like based on similar California cases, and what happens next in the litigation.

Here’s a fact that surprised even legal trade press: the plaintiff says Costco’s renewal notice arrived a full 60 days before his card was charged — which sounds early and harmless, but allegedly violates California’s rule that notice must come no more than 45 days before the renewal charge.

Quick Facts: Costco Auto Renewal Lawsuit

Detail	Information
Plaintiff	Russel George (also referred to as Russel George II in court records)
Defendant	Costco Wholesale Corporation
Court	U.S. District Court for the Northern District of California
Case Number	3:26-cv-02369
Case Type	Proposed consumer class action (California Automatic Renewal Law violation)
Core Allegation	Costco’s membership renewal notice was sent outside the legally required 15–45 day window and omitted required disclosures
Filing Date	March 18, 2026
Class Status	Not yet certified
Settlement	Not publicly disclosed; no settlement fund exists as of this writing

What Is the Costco Auto Renewal Lawsuit About?

The Costco auto renewal lawsuit is a proposed class action filed by California resident Russel George, who says his Gold Star membership auto-renewed on January 2, 2026, for $65 without Costco providing legally sufficient advance notice. Under California’s Automatic Renewal Law (ARL), businesses must send a renewal reminder no earlier than 45 days and no later than 15 days before the renewal charge hits.

George’s complaint alleges Costco’s email arrived roughly 60 days before the charge — outside that window — and that the notice failed to clearly state the amount to be charged, the renewal terms, or a straightforward cancellation method.

Key Takeaway: This case isn’t about whether Costco is allowed to auto-renew memberships at all — it’s about whether the notice Costco sent met California’s specific timing and disclosure requirements.

Costco Auto Renewal Class Action: Legal Status Overview

The case is currently a proposed class action, meaning no judge has yet certified a class of affected Costco members. Costco has not been reported to have filed a formal answer or motion to dismiss as of this writing.

• Plaintiff: Russel George, represented by attorney Matthew Smith of Migliaccio & Rathod LLP.

• Defendant: Costco Wholesale Corporation.

• Filed: March 18, 2026, in the U.S. District Court for the Northern District of California.

According to reporting on the complaint, George sent Costco a formal demand letter in January 2026 asking the company to address the issue before litigation. Costco reportedly responded in February 2026 but declined to take corrective action, which preceded the March lawsuit filing.

Latest Update 2026

Date	Development
January 2, 2026	George’s Gold Star membership auto-renews for $65
January 2026	George sends Costco a formal demand letter over the renewal notice
February 2026	Costco responds but reportedly declines corrective action
March 18, 2026	Lawsuit filed in U.S. District Court for the Northern District of California (Case No. 3:26-cv-02369)
June 2026	A preliminary hearing is reportedly scheduled
As of this writing	No class certification ruling, no settlement, no response from Costco publicly confirmed on the merits

Key Takeaway: This case is still in its early procedural stages — a preliminary hearing is a scheduling and motion step, not a ruling on the merits or a settlement conference.

Key Allegations in the Costco Auto Renewal Lawsuit

According to the complaint, the core allegations include:

1. Costco’s renewal notice was sent approximately 60 days before the membership charge, allegedly outside California’s required 15-to-45-day notice window.

2. The notice allegedly failed to clearly disclose the exact dollar amount that would be charged.

3. The notice allegedly did not clearly explain the length and terms of the renewed membership.

4. The notice allegedly failed to provide a clear, accessible method for canceling before the renewal charge.

5. These omissions and timing issues allegedly violate California’s Automatic Renewal Law, False Advertising Law, Consumers Legal Remedies Act (CLRA), and Unfair Competition Law (UCL).

Is Costco’s Renewal Notice Actually Non-Compliant?

This is the central legal question the court will have to decide, and it isn’t settled yet. California’s ARL is specific about timing (a notice window of 15 to 45 days before the charge) and content (clear disclosure of price, terms, and cancellation method), but whether Costco’s actual notice practices cross that line company-wide — not just for one member — is what the litigation aims to establish.

Costco has not publicly conceded that its renewal process violates the ARL, and no court has yet ruled on the merits of the claim.

Key Takeaway: A single member’s experience doesn’t automatically prove a company-wide violation — that’s exactly why class certification is a separate, contested step in cases like this.

Company Background: How the Auto-Renewal Issue Started

Costco’s membership model relies heavily on annual renewals, with the company reporting renewal rates above 90% in recent years. Like many subscription and membership-based businesses, Costco automatically renews memberships unless a member proactively cancels, which is legal under California law only if specific notice and disclosure rules are followed.

California’s ARL has driven a wave of similar litigation against subscription businesses in recent years, as regulators and plaintiffs’ firms have increasingly scrutinized renewal notice timing and clarity across industries.

Consumer Complaints and BBB Records

Widespread public complaints specifically citing Costco’s renewal notice timing were not identified in the sources reviewed for this article. Most of the public record on this specific dispute currently comes from the legal complaint and related legal trade press rather than a broad wave of documented consumer complaints.

Key Takeaway: Don’t assume a large public complaint record exists yet — like several other recent auto-renewal cases, this one is primarily playing out through one named plaintiff’s claim and the litigation it triggered.

Who Qualifies for the Costco Auto Renewal Lawsuit? Eligibility Criteria

No class has been certified, so there is no confirmed list of who qualifies for compensation. Based on the proposed class definition implied by the complaint, eligibility would likely extend to:

• California Costco members whose memberships were automatically renewed

• Members who received a renewal notice outside the 15-to-45-day window required under the ARL

• Members whose renewal notice arguably lacked required disclosures about price, terms, or cancellation method

Key Takeaway: Until a judge certifies a class or the parties reach a settlement, this list describes who the lawsuit is trying to represent — not who is guaranteed a payout.

Costco Auto Renewal Lawsuit Settlement Amount: Payout Estimates

No settlement has been reached, and no dollar figure for a payout has been publicly disclosed for this specific case. For context, other California Automatic Renewal Law cases have resulted in significant settlements and penalties, though none of these figures apply directly to the Costco case.

Case (for context only)	Reported Outcome
FTC v. Chegg, Inc.	Reportedly part of a $7.5 million settlement package tied to renewal practices
Unspecified ARL enforcement action referenced in legal trade press	Reportedly included $6.38 million in civil penalties and $1 million in restitution
General ARL statutory damages exposure	Some reporting cites minimum statutory damages around $2,500 per violation in certain cases, though this varies by claim and court

Key Takeaway: These figures come from other, unrelated ARL cases and are included only to illustrate the scale of past settlements in this area of law — they are not confirmed or predicted outcomes for the Costco case.

How a Payout Would Be Calculated

If the Costco case eventually settles or a class is certified and liability is established, payouts in comparable California ARL cases have typically involved:

• Full or partial restitution of membership fees charged during the improperly noticed renewal period

• Statutory damages under the CLRA, which some reported cases have calculated on a per-violation basis

• A pro-rata distribution model among class members if a lump-sum settlement fund is negotiated

This reflects a general pattern seen in similar ARL litigation, not a confirmed formula for the Costco case specifically.

How to File a Claim (What Happens If a Settlement Is Reached)

There is currently no claims process for the Costco auto renewal lawsuit because no settlement or certified class exists yet. If that changes, the process would typically follow these steps:

1. The court certifies a class or the parties announce a settlement.

2. The settlement receives preliminary court approval.

3. A claims administrator opens an official claims website and claim form.

4. Eligible Costco members submit a claim, often referencing their membership account or renewal charge date.

5. The court holds a final approval hearing before payments are distributed.

Key Takeaway: Bookmark official court filings or reputable legal news sources rather than acting on any third-party site claiming you can file a Costco renewal claim today — no such claims process currently exists.

Filing Deadline and Statute of Limitations

There is no claims filing deadline yet because no settlement has been reached. Separately, California’s consumer protection statutes cited in the complaint — including the UCL and CLRA — generally carry statutes of limitations in the range of three to four years, though the exact deadline for any individual claim depends on when the renewal charge occurred and which statute applies.

If you believe you have an individual claim outside of any future class settlement, consult a consumer protection attorney about the specific deadline that applies to your situation.

Is the Costco Auto Renewal Lawsuit a Scam?

The underlying lawsuit is real, filed in federal court and reported by legal trade publications, consumer news outlets, and court-record services like PacerMonitor. What members should watch for are scam websites or unsolicited messages claiming you can “file a claim now” for a Costco renewal settlement.

Since no settlement fund or claims process exists as of this writing, any site asking for personal or payment information to “register” for a Costco auto-renewal payout should be treated as suspicious.

Other Related Auto-Renewal Lawsuits

Costco is not the first major membership or subscription business to face California ARL litigation. Other companies that have faced similar auto-renewal claims include:

• Life Alert, over allegations it continued billing consumers after cancellation requests

• WW International (Weight Watchers), over automatic subscription renewal practices

• Ancestry.com, over free-trial-to-paid-subscription conversion practices

If you’ve researched the broader wave of [automatic renewal class action](https://lawfold.com/automatic-renewal-lawsuit/) lawsuits, note that each case turns on its own specific notice language and timing — a ruling in one case doesn’t automatically apply to Costco’s practices.

Frequently Asked Questions

What is the Costco auto renewal lawsuit about?

The Costco auto renewal lawsuit refers to a March 2026 class action filed in the Northern District of California alleging Costco violated the state’s Automatic Renewal Law by sending a membership renewal notice outside the required 15-to-45-day window and omitting required disclosures about price, terms, and cancellation. Costco has not publicly responded to the allegations on the merits as of this writing.

Who qualifies for the Costco auto renewal lawsuit?

No class has been certified yet, so there is no confirmed eligibility list. Based on the proposed class definition, California Costco members whose memberships were automatically renewed with a notice allegedly outside the legal timing window or missing required disclosures may eventually qualify if a class is certified or a settlement is reached, but this is not yet guaranteed.

How much is the Costco auto renewal lawsuit settlement worth?

No settlement has been reached, so there is no confirmed payout amount for this case. Other California Automatic Renewal Law cases have resulted in settlements reaching into the millions of dollars and statutory damages estimated around $2,500 per violation in some claims, but these figures come from unrelated cases and should not be treated as a prediction for the Costco lawsuit.

Why does the timing of the renewal notice matter so much in this case?

California’s Automatic Renewal Law requires notice no earlier than 45 days and no later than 15 days before a renewal charge, specifically so consumers have a meaningful, timely opportunity to decide whether to cancel. The complaint alleges Costco’s notice arrived roughly 60 days early — outside that window — which plaintiffs argue defeats the purpose of a timely reminder even though technically it was sent before the charge.

What is the filing deadline for the Costco auto renewal lawsuit?

There is currently no claims filing deadline because no settlement fund exists. If a settlement is eventually reached, the court will set a claims deadline as part of the approval process. Consumers should follow official court filings or established legal news sources for updates rather than relying on unofficial deadline claims circulating online.

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What Costco Members Should Do Now

The Costco auto renewal lawsuit is still in its early stages, with a preliminary hearing reportedly scheduled for June 2026 and no ruling yet on class certification or the underlying merits. There is no settlement, no certified class, and no claims process — despite what some third-party sites may suggest.

If you’re a Costco member in California who noticed an early or unclear renewal notice, the most useful step right now is to keep records of your renewal emails, charge dates, and any cancellation attempts. That documentation could matter if a settlement is reached down the line.

Before you do anything else:

• Save copies of any Costco renewal notice emails and the dates they were sent

• Note the exact date your membership was charged for renewal

• Avoid any third-party site asking for payment or personal data to “join” this lawsuit

• Follow updates through court dockets (PacerMonitor) or established legal news outlets

This case is worth watching, not acting on, for now. As the litigation develops, an official claims process — if one ever emerges — will be announced through the court, not through unsolicited claim forms.

Sources: Top Class Actions, Daily Journal, Law Commentary, MarketRealist, Rolling Out, Scripps News, PacerMonitor, and additional reporting on George v. Costco Wholesale Corp., Case No. 3:26-cv-02369, U.S. District Court for the Northern District of California, along with background reporting on California’s Automatic Renewal Law from Benesch Law and Buchanan Ingersoll & Rooney PC.