Membership Mix-Up: Costco in Hot Water Over Renewal Rules

A California man has taken Costco to court, claiming the store failed to follow state rules about membership renewals. Russel George says he never got the required warning before his $65 Gold Star membership automatically renewed. California law says customers must get a heads-up 15 to 45 days before renewal. George argues that if he’d known sooner, he would have canceled—since he wasn’t using the membership enough.

Costco offers two membership options: the standard Gold Star for $65 or the pricier Executive plan at $130. Both auto-renew unless canceled. But California’s rules are strict: companies must let customers cancel the same way they signed up. That means if someone signed up online, they should be able to cancel online. The state also requires easy cancellation methods, like a toll-free number or email. This isn’t just about one person. The lawsuit could affect thousands of Costco members in California who might have faced the same issue. The case raises questions about how big companies handle memberships and whether they’re doing enough to follow local laws. Costco hasn’t commented publicly yet, but the lawsuit could push them to review their renewal process.

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