Latest News About Costco Auto Renewal Lawsuit

Costco is facing a new California class-action lawsuit over its auto-renewal notices, with the plaintiff alleging the company gave renewal warnings too early and failed to include required cancellation details. The case was reported in early April 2026 and is scheduled for a preliminary hearing in June.[1][2][3]

What the lawsuit says

The complaint centers on California’s Automatic Renewal Law, which allegedly requires a renewal notice to be sent 15 to 45 days before the charge; the suit claims Costco sent its notice about 60 days ahead instead. The plaintiff also argues Costco’s notice did not clearly provide all the legally required information, including renewal terms, charge amount, and an easy cancellation path.[2][3][1]

Why it matters

The lawsuit also challenges Costco’s cancellation process, saying members can cancel only by phone or in a warehouse, which may not match California’s requirements about using the same method as enrollment or offering a simple cancellation option. Costco’s standard membership is $65 a year, and the executive tier is $130 a year.[3][2]

Current status

As of the latest reports, Costco has been contacted for comment, and the case is headed toward a preliminary hearing in June. No ruling has been reported yet, so this is still an active legal challenge rather than a decided case.[1][2][3]