Costco Faces New Class‑Action Lawsuits Over Auto‑Renewal Notices

Background

In the past month, Costco Wholesale has been hit with at least two class‑action suits filed in California alleging violations of the state’s Automatic Renewal Law. The complaints contend that the retailer’s standard practice—emailing members 60 days before charging their credit cards for an annual renewal—exceeds the 45‑day notice window required by law.

Legal Claims

Plaintiffs argue that the delayed notice deprives members of a statutory right to timely information and clear cancellation instructions. The lawsuits cite violations of the California False Advertising Law, Consumer Legal Remedies Act and Unfair Competition Law in addition to the Automatic Renewal Law. One suit was brought by Russel George, while another involves a separate California resident who says he would have canceled had he received a proper notice.

Potential Impact

If the courts find Costco in breach, the retailer could face injunctive relief forcing it to redesign its renewal communications, as well as monetary damages and attorney fees. The cases also raise broader questions for subscription‑based businesses about compliance with state consumer‑protection statutes.