Costco sued over auto‑renew notices

A California man sued Costco in federal court on March 18, 2026, saying the company renewed his membership after sending a notice 60 days before the charge instead of inside California’s 15-to-45-day window for annual auto-renewals. (dockets.justia.com) (codes.findlaw.com) The named plaintiff, Russel George, says Costco charged him $65 for a Gold Star renewal and that he would have canceled if the notice had arrived when California law says it should. (masslive.com) (customerservice.costco.com) The case is not about whether Costco can use auto-renew at all. It is about the timing and content of the reminder, which California treats like a last-call warning before a yearly charge hits your card. (codes.findlaw.com) (oag.ca.gov) California tightened its Automatic Renewal Law again in 2024, and the new rules took effect on July 1, 2025. For subscriptions or memberships with an initial term of one year or longer, companies must send a notice at least 15 days and no more than 45 days before renewal. (cooley.com) (codes.findlaw.com) The notice also has to do more than say “you’re renewing soon.” California says it must clearly state that the offer will renew unless the consumer cancels, describe how to cancel, and include key renewal terms. (oag.ca.gov) (cooley.com) That is why an email sent too early can still create legal trouble. A reminder that lands 60 days out can be forgotten like a dentist appointment card stuck on the fridge, and the law now treats that timing as part of the consumer protection itself. (masslive.com) (codes.findlaw.com) Costco’s membership model makes these notices unusually important because the annual fee is the gatekeeper to the whole store. Costco’s official pricing lists Gold Star at $65 a year and Executive at $130 a year, so an unwanted renewal is not a hidden penny charge buried in a phone bill. (customerservice.costco.com) The lawsuit is styled as a proposed class action, which means George is trying to represent other California members who may have received the same kind of renewal notice. The case was filed in the United States District Court for the Northern District of California and is still at an early stage. (dockets.justia.com) (law.com) California’s attorney general warned businesses in September 2025 that the state had strengthened cancellation and renewal rules for subscription-style charges. This Costco case is what that warning looks like once a customer turns it into a court fight. (oag.ca.gov) (cooley.com) If the plaintiff wins class certification or a settlement later, the case could force changes to when Costco emails renewal reminders and what those emails say. If Costco defeats the claims, the bigger lesson for other companies will still be that California now treats subscription timing rules as something closer to traffic laws than polite suggestions. (lawcommentary.com) (codes.findlaw.com)