Unauthorized and Unlawful Auto-Renewal Lawyers
Table of Contents
Automatic renewals of online services, subscriptions, and other online transactions have become extremely commonplace. Unfortunately, many companies intentionally fail to clearly disclose the existence of automatic renewal charges to the consumer and bury these provisions in “fine print”.
As a result, consumers who intend only a one-time purchase or to sign up for a time-limited promotion get saddled with recurring charges to which they never meant to give consent. Many companies even include auto-renewal provisions when they offer a “free trial” but prompt individuals to enter their credit card information.
When this happens, consumers are often unaware that they are incurring continuous charges until later on when, for example, they review their credit card statements and discover that they have been charged for something they no longer use or want.
Many companies also make it unduly difficult for consumers to cancel automatic renewals by, for example, requiring them to call a phone number where no live person even picks up the phone.
Laws Restricting Automatic Renewals in California and Other States:
To address these unscrupulous practices, the California legislature has passed an Automatic Renewal Law that makes it unlawful for companies to:
- Fail to disclose automatic renewal terms in a “clear and conspicuous manner”;
- Charge the consumer’s credit card without first obtaining the consumer’s affirmative consent to the agreement containing the auto-renewal terms;
- Fail to provide the consumer with a receipt/acknowledgement containing the automatic renewal terms and information how to cancel;
- Fail to allow consumers to cancel automatic renewals online
Over twenty other states, including New York, Florida, Illinois, and Oregon, have also enacted laws placing restrictions on auto-renewals.
Contact Auto-Renewal Class Actions Attorneys
The most effective way to pursue companies who violate auto-renewal laws is through class action lawsuits. If you believe that a company you dealt with has engaged in illegal or unfair automatic renewal practices, call our attorneys at 310-575-2550 or email us to discuss your potential case.