Berger & Montague, P.C. is investigating potential claims on
behalf of California residents who have been automatically charged
for an ongoing product or service.
In December 2010, California enacted its Automatic Renewal Law
(ARL), Business and Professions Code Section 17600 et
seq. This law prohibits businesses from charging consumers'
credit card, debit card, or bank account for the automatic renewal
of their product or service without first obtaining a consumer's
Under the law, businesses that automatically renew customers'
orders must state their renewal terms in a "clear and conspicuous"
manner. This means these specific terms must be obvious to the
consumer. For example, the terms will usually be in a large or
contrasting font that "clearly calls attention to the language." In
addition, the disclosure needs to be in immediate proximity to the
signature line or online authorization button, or in instances of a
verbal confirmation, told to the consumer almost immediately by the
company in the same conversation.
The ARL applies to contracts entered into by any California
resident, regardless of where the company is located. If a business
fails to comply with these requirements, all goods or services the
consumer receives under their automatic renewal service agreement
are deemed "unconditional gifts" to the consumer.
renewal charges lawsuits
- In 2013, a Pasadena resident sued the music-streaming service
Spotify USA Inc, claiming she did not consent to automated renewal
after her initial free trial.
- In 2014, a San Francisco resident sued cloud-storage provider
Dropbox, Inc., claiming he did not consent to automatic renewal
when upgrading his basic account to a "Pro" subscription.
- Also in 2014, a Beverly Hills plaintiff sued video-streaming
service Hulu, LLC after his one-week free trial ended, asserting he
did not favorably consent.
If you are a California resident who signed up for a
subscription or service that automatically renews and you weren't
properly informed about the renewal, contact Berger & Montague.
Our firm may be able to get you and other California residents your
have to pay to consult with an attorney?
We are happy to talk with you about your potential claims free
of charge. If we decide to represent you in a lawsuit, we will
enter into a written contingent fee agreement with you. A
contingent fee agreement means we only get paid if we win, and that
we will receive our fees from the amount paid by the Defendant in
Please contact us to discuss the details of your case. You
- Use the contact form on this page ("Inquire About Your
- Email firstname.lastname@example.org
- Call (800) 424-6690
Stay updated and follow us on: