What Is the Costco Auto Renewal Lawsuit?
The Costco Auto Renewal lawsuit is a proposed consumer class action against Costco Wholesale Corporation over how Costco notified California members before automatically renewing their memberships. Russel George II filed it on March 18, 2026, in the U.S. District Court for the Northern District of California, as Case No. 3:26-cv-02369-TSH.
George alleges Costco violated California's Automatic Renewal Law (ARL). The complaint pleads five counts: false advertising, unfair competition, the Consumers Legal Remedies Act, conversion, and negligent misrepresentation. The ARL supplies the underlying violation for the first three.
The case is a single proposed class action. It is not a multidistrict litigation and has no connection to a federal MDL. Costco's other 2026 lawsuits cover different conduct and are covered below.
“Plaintiff Russel George II brings this consumer protection class action against Defendant Costco Wholesale Corporation ("Costco"), a nationwide retailer, for engaging in an automatic renewal scheme that violates California's consumer protection laws. Plaintiff brings this action on behalf of himself and similarly situated individuals under the ARL, the California False Advertising Law (FAL) California Consumer Legal Remedies Act (CLRA), and the California Unfair Competition Law (UCL), and common law.”
Source: George v. Costco Wholesale Corp., No. 3:26-cv-02369-TSH (N.D. Cal.), Class Action Complaint, Document 1, paragraphs 1 and 9 (March 18, 2026)
Why Are People Filing Costco Auto Renewal Lawsuits?
People are filing Costco Auto Renewal lawsuits because they say Costco's renewal reminder reached California members outside the window the ARL requires. The ARL requires a notice "at least 15 days and not more than 45 days" before an annual plan renews, according to the complaint.
The statute also requires the notice to state clearly the renewal length and terms, the amount to be charged, and at least one cancellation method. The complaint cites California Business and Professions Code section 17602 for both rules.
The ARL was passed to end ongoing card charges made without a consumer's explicit consent. A members-only warehouse club sells an annual product, so a missed reminder costs a full year of fees.
Federal law adds no backstop. The Eighth Circuit vacated the Federal Trade Commission's "click-to-cancel" rule on July 8, 2025, on procedural grounds. State auto-renewal laws remain in force, and California amended its own law effective July 1, 2025.
That amendment, Assembly Bill 2863, requires a separate consent step and cancellation through the same medium used to sign up. The George complaint does not plead AB 2863 by name.
What Injuries Are Included in the Costco Auto Renewal Lawsuit?
The Costco Auto Renewal lawsuit includes three distinct categories of alleged injury: an untimely renewal notice, missing renewal disclosures, and an unexpected membership charge. All three come from the same Costco form email and the same renewal charge.
No court has ruled on any of these allegations, and Costco's answer is not available on the free public docket. Each item below describes what the complaint alleges, not a finding.
Untimely Renewal Notice
An untimely renewal notice is a reminder sent outside the period a statute sets, so it arrives either too late to act on or so early that it is easily forgotten.
George alleges Costco emailed his renewal notice on November 3, 2025, which was 60 days before Costco charged his card on January 2, 2026. By a simple calendar count, the ARL window for that charge ran from about November 18 to December 18, 2025.
The complaint calls the timing systemic. It alleges Costco uses an automated, standardized notice system that sends a substantially similar email on a similar timeline to other California members.
Missing Renewal Disclosures
A renewal disclosure is the information a statute says a seller must state clearly, such as the length of the renewal term, the price, and how to cancel.
The complaint alleges Costco's email left out the length and additional terms of the renewal period, the amount to be charged, and any method to cancel. The email's subject line reads "Your Costco Membership Will Auto Renew Soon."
The email text in the complaint's screenshot says the membership fee will be charged on the first day of January. It also tells members to visit the membership counter or Costco.com at least 72 hours earlier to change payment or cancel.
Whether that wording satisfies section 17602 is the legal question the court will have to answer.
Unexpected Membership Charge
An unexpected membership charge is a recurring fee billed to a card that the cardholder did not realize was about to be taken.
George alleges the January 2, 2026 renewal charge of $65 was a monetary injury. He says he began reconsidering the membership in late 2025 because he shopped at Costco so rarely.
The complaint adds that George would have cancelled had a timely notice arrived. It also pleads the charge as conversion, meaning Costco wrongly took a specific sum of money that belonged to him.
Who Qualifies for the Costco Auto Renewal Lawsuit?
You may qualify if:
- You are a California resident who bought a Costco Gold Star or Executive membership
- Costco charged your card to renew that membership automatically
- You did not receive a renewal notice between 15 and 45 days before the charge
You may not qualify if:
- You live outside California, since the case is brought under California law and the proposed class covers California residents only
- You received a renewal notice inside the 15 to 45 day window before your charge
- You are Costco, an affiliate, or a current or former Costco employee, officer, or director
- You expect a payout now, since no settlement exists and no class has been certified
The proposed class has not been certified, so no one is currently a class member and no claim form exists. Whether any California member recovers money depends on certification, the merits, and any settlement. Only a qualified attorney reviewing your notice and charge dates can confirm your position.
What Is the Current Status of the Costco Auto Renewal Lawsuit?
The current status of the Costco Auto Renewal lawsuit is that the case is in early pretrial litigation, with Costco's answer on file and no class certified. No court has ruled on whether Costco's renewal notice complied with California law.
Magistrate Judge Thomas S. Hixson presides. The court referred the case to private ADR in June 2026, and the parties owe a status report on private mediation on October 22, 2026.
George v. Costco Wholesale Corp.
Russel George II, a San Pablo, California resident, filed this proposed class action against Costco Wholesale Corp. on March 18, 2026. Migliaccio & Rathod LLP represents him and the proposed class.
| Court | U.S. District Court, Northern District of California (San Francisco Division) |
| Case Number | 3:26-cv-02369-TSH |
| Judge | Magistrate Judge Thomas S. Hixson |
| Filed | March 18, 2026 |
| Plaintiff | Russel George II |
| Defendant | Costco Wholesale Corp. |
| Claims Alleged | California False Advertising Law, Unfair Competition Law, Consumers Legal Remedies Act, conversion, negligent misrepresentation |
| Proposed Class | California residents who bought a Costco Gold or Executive membership and were charged an autorenewal without a notice 15 to 45 days before the charge |
| Current Stage | Answer filed June 18, 2026; referred to private ADR; class certification motion due July 20, 2027 |
Judge Hixson's September 24, 2026 case management order sets the remaining schedule. Initial disclosures are due November 23, 2026, fact discovery closes June 8, 2027, and Costco's opposition to class certification is due September 14, 2027.
Several news outlets described a June 2026 "preliminary hearing." The docket shows a case management scheduling order and the private ADR referral on June 11, 2026.
How Much Is the Costco Auto Renewal Lawsuit Worth?
The Costco Auto Renewal lawsuit has no determined worth, because no settlement has been reached and no court has certified a class as of October 2026.
The complaint seeks damages, restitution of fees, disgorgement of profits, an injunction, and attorneys' fees. It does not state a total. The only individual figure it pleads is the $65 Gold Star fee, so any estimate of a payout today would be speculation.
The complaint invokes federal jurisdiction under the Class Action Fairness Act on the basis that the amount in controversy for the class exceeds $5,000,000. That is a jurisdictional threshold, not a settlement figure or a promised recovery.
The injunction the complaint requests would require Costco to amend its renewal notices so they contain the required information and go out on the ARL's schedule.
Costco Auto Renewal Lawsuit Updates and Case Status
Here is the current status of the Costco Auto Renewal lawsuit, updated with new filings, rulings, and case-count reports as they're confirmed. No settlement date has been set as of October 2026; the Costco Auto Renewal class action remains in active pretrial litigation. Every verified development is listed in the timeline below, in order.
Costco Auto Renewal Lawsuit Timeline
California's amended Automatic Renewal Law takes effect
Assembly Bill 2863's amendments to California's Automatic Renewal Law took effect on July 1, 2025. They add a separate consent step and require cancellation through the same medium used to enroll, six months before the Costco renewal at issue in the George case.
Eighth Circuit vacates the FTC click-to-cancel rule
The U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission's negative option rule on July 8, 2025, because the agency skipped a required preliminary regulatory analysis. State auto-renewal laws such as California's remained in force.
Migliaccio & Rathod opens a Costco auto-renewal investigation
The law firm Migliaccio & Rathod announced an investigation of Costco's membership auto-renewal practices, citing consumer reports that Costco renewed memberships even after members declined auto-renewal. That reported problem differs from the notice-timing theory the same firm later filed for George.
Costco emails Russel George a renewal reminder
Costco sent Russel George an email titled "Your Costco Membership Will Auto Renew Soon" on November 3, 2025. The complaint says the email arrived 60 days before the renewal charge.
Costco charges George's card $65 for the renewal
Costco automatically renewed Russel George's Gold Star membership and charged his payment card $65 on January 2, 2026. George says he was surprised by the charge.
George sends Costco a CLRA notice letter
George sent Costco a certified-mail notice on January 20, 2026, under California Civil Code section 1782. The letter said Costco violated the Consumers Legal Remedies Act and demanded a fix.
Costco answers the letter and declines to act
Costco responded to George's notice letter on February 27, 2026, but did not provide the requested relief or any other remedy, according to the complaint.
George files the class action in the Northern District of California
Russel George II sued Costco Wholesale Corp. on March 18, 2026, as Case No. 3:26-cv-02369-TSH. The clerk assigned the case to Magistrate Judge Thomas S. Hixson the same day.
Court issues the initial scheduling order and summons
The Northern District of California issued its Initial Case Management Scheduling Order with ADR deadlines and a summons for Costco in George v. Costco on March 25, 2026.
Judge Hixson admits plaintiff's attorney Jason Rathod
Judge Hixson granted the motion for Jason S. Rathod of Migliaccio & Rathod to appear pro hac vice for Russel George II on June 3, 2026.
Court sets a case schedule and refers the case to private ADR
Judge Hixson entered a case management scheduling order on June 11, 2026, and referred George v. Costco to private alternative dispute resolution. News outlets had expected a preliminary hearing in June.
Costco files its answer to the complaint
Costco Wholesale Corp. filed its answer to George's complaint on June 18, 2026, rather than a motion to dismiss. The free public docket does not include the answer's text.
Court docket records an order after two status reports
The court docketed an order in George v. Costco on September 17, 2026, after the parties filed status reports on September 9 and September 16. The order's text is not available on the free public docket.
Judge extends every case deadline by 60 days
Judge Hixson granted the parties' stipulation on September 24, 2026, and pushed each deadline back 60 days. The mediation status report is now due October 22, 2026, and the class certification motion July 20, 2027.
How to File a Costco Auto Renewal Lawsuit
Follow these 5 steps to file a Costco Auto Renewal lawsuit.
- Find your renewal charge: Locate the Costco membership charge on your bank or card statement and write down its exact date and amount.
- Search your inbox for the renewal email: Look for a message from Costco titled "Your Costco Membership Will Auto Renew Soon" and save it with the date it was sent.
- Count the days between the email and the charge: California's ARL window is 15 to 45 days before the renewal, so a gap of about 60 days matches the timing the George complaint challenges.
- Request a refund from Costco if you want one: Costco's auto-renewal refund form covers U.S. memberships renewed on the first of the month, and a refund ends the membership at month-end.
- Consult a consumer class action attorney: A lawyer can confirm whether you are a California resident within the proposed class and whether your own claim has deadlines.
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What Evidence Do You Need for a Costco Auto Renewal Lawsuit?
Evidence for a Costco Auto Renewal lawsuit claim centers on two dated records: the renewal notice Costco sent and the charge Costco made. The days between those two dates decide whether the notice fell in California's window.
Useful records include the original email with its header date, a card or bank statement showing the renewal amount, and a screenshot of your Costco account page showing membership type and renewal date.
Keep any refund request and Costco's reply as well. Your billing address matters too, because the proposed class covers California residents only.
What Did Costco Allegedly Know About Its Auto Renewal Notices?
The complaint alleges Costco knew its renewal notices drew complaints before George sued. It cites a Reddit thread in which a user says Costco mails renewal reminders "2 months in advance," and Better Business Bureau complaints about unnoticed renewals.
Costco received a formal notice letter from George on January 20, 2026, and responded on February 27, 2026, without offering a remedy. The complaint does not cite any regulator warning or enforcement action against Costco on this issue.
| Event | Actor | Date |
|---|---|---|
| Complaint to the Better Business Bureau about an unnoticed renewal charge | Unnamed Costco member | September 11, 2024 |
| Complaint that no evident cancellation option exists on Costco's website | Unnamed Costco member | February 1, 2024 |
| Complaint that Costco offers no convenient way to cancel | Unnamed Costco member | May 10, 2024 |
| Law firm announces an investigation of Costco auto-renewal practices | Migliaccio & Rathod LLP | September 8, 2025 |
| CLRA notice letter sent to Costco | Russel George II | January 20, 2026 |
| Costco declines to provide the requested relief | Costco Wholesale Corp. | February 27, 2026 |
Costco has not been found liable for anything, and the complaint's account of its notice system remains an allegation.
How Does the Costco Auto Renewal Lawsuit Compare to Other Costco Lawsuits?
The Costco Auto Renewal lawsuit differs from Costco's other 2026 lawsuits in legal theory, court, and class definition. It concerns notice timing for California members, while the other cases involve emails, product labels, and food safety.
Reports also describe a separate 2026 class action accusing Costco of passing tariff costs on to customers. It involves different conduct and is not part of this case.
| Case | Court | Theory |
|---|---|---|
| George v. Costco (auto renewal) | U.S. District Court, N.D. Cal. | Untimely and incomplete ARL renewal notices to California members |
| Aaland v. Costco (email) | King County Superior Court, Washington | False or misleading email subject lines to Washington residents |
| Johnston v. Costco (rotisserie chicken) | U.S. District Court, S.D. Cal. | "No Preservatives" labeling on Kirkland Signature chicken |
| Taylor v. Costco (salmonella) | U.S. District Court, W.D. Wash. | Alleged salmonella contamination at Costco's poultry supplier |
The Washington Costco email lawsuit and the Costco rotisserie chicken lawsuit each have their own pages. A member could be in more than one proposed class, because each case rests on different conduct.
Frequently Asked Questions
What is the Costco auto renewal lawsuit about?
The Costco auto renewal lawsuit is about a renewal reminder email that the plaintiff says Costco sent 60 days before charging his membership, outside California's 15 to 45 day window. The complaint also alleges the email omitted the renewal terms, the amount, and cancellation methods.
Is the Costco auto renewal lawsuit a class action or an MDL?
The Costco auto renewal lawsuit is a proposed class action, not a multidistrict litigation. Russel George II filed it alone in the Northern District of California as Case No. 3:26-cv-02369-TSH, and no court has certified a class.
Can I join the Costco auto renewal lawsuit?
No one can currently join the Costco auto renewal lawsuit through a claim form, because the court has not certified a class. The proposed class covers California residents charged an autorenewal without a notice 15 to 45 days earlier.
Is there a Costco auto renewal settlement?
No Costco auto renewal settlement has been announced. The case is in early pretrial litigation, Costco has filed an answer, and the court referred the parties to private ADR in June 2026.
Can I get a refund for a Costco auto renewal?
A refund for a Costco auto renewal is available through Costco's own refund form for U.S. memberships renewed on the first of the month. Costco says a refund ends the membership at the end of that month unless the member renews again.
What does California's Automatic Renewal Law require for an annual membership?
California's Automatic Renewal Law requires a renewal notice at least 15 days and no more than 45 days before an annual plan renews. The notice must also state the renewal terms, the amount charged, and a way to cancel.
Is the Costco auto renewal lawsuit the same as the Costco email lawsuit?
The Costco auto renewal lawsuit is a different case from the Costco email lawsuit. The email case is a Washington state-court class action about promotional subject lines, while the auto renewal case is a federal California case about renewal notices.