Automatic renewals of online services, subscriptions, and other online transactions have become extremely commonplace these days. 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 stuck with recurring charges to which they never meant to give consent.

Many companies also include auto-renewal provisions when they offer a “free trial,” but require users to enter their credit card information. When this occurs, consumers are often unaware they are incurring a continuous charge until much later when they have reviewed their credit card statement or received a notice in the mail.

To address these unethical practices, the California legislature passed the Automatic Renewal Law that makes it unlawful for companies to:

• Fail to disclose automatic renewal terms in a “clear and conspicuous manner”;
• Charge a customers/consumers credit card without first obtaining the consumer’s 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;
• Failure to allow consumers the ability to cancel automatic renewals online.

We are Advocates for Justice

We hold companies accountable unfair automatic renewal practices. Contact us today for a free consultation and to learn more about your legal rights. If you think you may need a lawyer, don’t delay in contacting us. Your claims may be barred by a statute of limitations if you wait too long.