California man hits Costco with class-action lawsuit over alleged sneaky membership charge

A California man is taking on retail giant Costco, accusing the warehouse club of quietly renewing memberships without giving customers proper notice — and making it too difficult to cancel.

Plaintiff Russel George has filed a class-action lawsuit alleging the retail giant violated state law requiring businesses to notify customers between 15 and 45 days before charging them for another year of service, according to Scripps News.

George claims he did receive a renewal notice — but not within the legally required window. Because the alert came too early, his legal team argues it was effectively useless.

He says he doesn’t use his membership enough to justify the cost and would have canceled if he’d gotten a timely reminder before the charge hit his account.

The lawsuit also zeroes in on Costco’s cancellation process.

Currently, members who want to opt out must either call a toll-free number or visit a warehouse in person. But California law requires that businesses allow customers to cancel subscriptions using the same method they used to sign up.

In other words, if you joined online, you should be able to cancel online — something George’s legal team argues Costco fails to provide with a “straightforward” exit.

The legal battle comes amid broader scrutiny of subscription practices nationwide.

In 2024, the Federal Trade Commission attempted to roll out “click-to-cancel” rules requiring companies to make cancellations as easy as sign-ups. However, a federal appeals court struck down the regulation in July 2025, ruling the agency had not followed proper procedures.

Costco currently offers two membership tiers: a standard plan for $65 annually and an executive membership for $130, which includes perks like 2% cashback on eligible purchases, travel discounts, and access to exclusive deals on services ranging from insurance to vacation packages.

Members also benefit from bulk pricing, discounted gas, and access to in-store services like pharmacies and optical centers.

A preliminary hearing in the case is scheduled for June.

The Post has reached out to Costco for comment.

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