Unlawful Subscription Renewal
How would you like to buy an item online—some Adore Me underwear, for example—and find out, months later, that the company charged you each month for more underwear? No, it hasn’t sent you anything, but you’re welcome to pick something out for the money it’s already taken from you. It claims that when you made your purchase, you signed up for a “subscription.”
Yahoo! Inc., doing business as Rivals.com, has agreed to a settlement in a class action that claims the company violated California state laws. The complaint said that the company automatically renewed subscriptions in a way that violated California’s Automatic Renewal Law, failing to notify customers that they would be charged automatically on a recurring basis.
Are you an Internet fax subscriber who noticed changes to your account that you did not give permission for? We’re investigating Internet fax company J2 Global, which may have been meddling with customer accounts in various ways: by transferring customers to a different J2 provider, by attempting to lock in subscriptions via automatic renewals, by signing them up for more expensive programs or adding services that customers have not approved, and by making it difficult for customers who choose to leave to take their fax numbers with them.
Code42 Software, Inc. has agreed to settle a case alleging that it did not comply with California laws when automatically renewing customer subscriptions.
Stages of Beauty’s website sells skin improvement products designed for specific decades of life and offers to deliver products on a subscription basis as well. However, Plaintiff Matthew Lopez claims that the company does not follow California law regarding the automatic renewal of subscriptions. The laws require the following: Before the consumer clicks the button to agree to a company’s subscription agreement, the company must present the automatic renewal terms in a “clear and conspicuous manner … in visual proximity” to the request for agreement. Before charging a customer’s credit or debit card for an automatic renewal, the company must get the consumer’s affirmative consent. The company must also provide an acknowledgement that contains the terms, the cancellation policy, and information on how to cancel the subscription, in a way that can be retained by the consumer.