Consumer Protection Law
Apr. 28, 2026
Costco auto-renewal lawsuit tests California ARL compliance, raises class action risk
A proposed class action against Costco over an allegedly defective membership renewal notice carries meaningful stakes: ARL enforcement is trending toward strict compliance, and courts are increasingly focused on whether businesses followed the statute to the letter.
A proposed class-action lawsuit is challenging Costco's renewal practices under California's Automatic Renewal Law (ARL). Plaintiff pairs that claim with California's Unfair Competition Law (UCL), Consumer Legal Remedies Act (CLRA) and False Advertising Law (FAL), along with common law claims.
The underlying facts are straightforward. Plaintiff purchased a "Gold Star" annual Costco membership in 2023 for $65. In late 2025, Plaintiff considered cancelling...
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