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.
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.
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For annual auto-renewals like Adobe CC or McAfee, I just wish there was a law requiring them to email me a reminder that I have an upcoming renewal and will be charged $x on x date. I've set up reminders in my phone a year out for auto-renewal dates, but have lost that info during factory resets or phone upgrades. It's hard to track/remember things a year out. Some companies voluntarily provide this courtesy, although it seems uncommon, but I really appreciate the reminder and the opportunity to unsubscribe ahead of time, or just to properly budget for it. Financial situations can change a lot in a year, and it's so professional and *kind* when companies issue a reminder rather than let you be surprised with nonrefundable charges. I'd love to see these reminders be a required part of all auto-renewal agreements.
On that note, I did have a reminder set about an Adobe CC auto-renewal, but when I went into my account I did not have any options in there to turn off auto-renewal, and the help guide showed a "cancel" button that was not present on my screen. I took screen captures of the discrepancy. Not cool.
Adobe Reports Record Revenue
Tuesday, June 21, 2016 4:05 pm EDT
Strong Adoption of Cloud Solutions Drives 20 Percent Year-over-year Revenue Growth
- See more at: http://news.adobe.com/press-release/corporate/adobe-reports-record-revenue-1#sthash.aljF0JdP.dpuf
This website helped arm me with the information i needed to get these vultures to finally cancel my sub without the 150$ fee. thank you very much