Automatic Subscription Renewal Programs
Consumers who have unwittingly entered into automatic renewal agreements may be eligible to file a lawsuit against companies that mislead their customers into such agreements. Various states have consumer protection laws prohibiting companies from automatically renewing subscriptions without obtaining the customer's express consent or by not adequately explaining the terms and conditions. Further, there are federal laws that protect consumers and give regulators the ability to go after companies that violate consumer trust.
FREE AUTO-RENEWAL PROGRAM LAWSUIT EVALUATION
GET LEGAL HELP NOW
Automatic Subscription Renewal
Automatic Subscription Renewal Laws
In New York, S.B. 40 also states that customers must give their express consent before companies can charge for renewal services.
Federally, there are laws protecting consumer's rights. Under the Federal Trade Commission Act, 15 U.S.C. Section 41, companies must clearly disclose their automatic renewal policies. Congress' Restore Online Shoppers' Confidence Act gives the FTC and state attorneys general the ability to penalize companies who use negative option features (in which companies use a customer's silence as acceptance of a renewal) in their automatic renewal program. It also prohibits companies from turning a free trial into a paid subscription without getting the customer's consent.
Free Trial Periods
Some companies, for example, are accused of offering products on a short trial period, but not telling customers they will be charged full price for the goods after the trial period expires or that they will be charged a restocking fee when they return goods. In some cases, customers say their goods do not even arrive within the trial period, so by the time their goods arrive, the free trial is already over and there is no time to cancel.
Automatic Renewal Lawsuits
Also in 2015, a lawsuit was filed against Neopets, alleging unfair business practices for failing to warn about continuous renewals.
Customers who have unknowingly signed up for automatic renewal services or have been misled by the terms and conditions of an automatic renewal may be eligible to file a lawsuit against the company or companies involved.
Subscription Program Auto-Renewal Legal HelpIf you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
Last updated on
- Norton Internet Security allegedly has pop ups that cause subscribers to pay multiple times for subscriptions.
No Need to “Renew” Their Angst: Auto-Renewal Plaintiffs Remain Vigilant
Automatic Renewals Are a Runaway Freight Train, but Lawsuits Are Fighting Back