(Bloomberg) — Amazon Inc. makes it too hard and unnecessarily confusing to cancel subscriptions for services, some customers claimed in a lawsuit alleging the internet retailer is violating California’s rules on automatic renewal programs.
The lawsuit was filed in San Francisco federal court by three California residents who say they signed up for free trials of Amazon services only to have the company convert them into paid subscriptions without their consent.
Amazon offers subscriptions for numerous services including Amazon Prime, which provides free shipping, Prime Video, Amazon Music and Kindle Unlimited.
California’s automatic renewal law, like those in other states, requires companies to make sure customers know what they are getting into before they click the subscribe button.
The customers claim Amazon is violating California’s law by failing to present automatic renewal terms in “a clear and conspicuous manner,” charging credit cards without “first obtaining affirmative consent,” and failing to send subscribers notices that explain renewal terms and how to cancel subscription.
Amazon didn’t reply to a request for comment.
The three plaintiffs seek to represent all those in the state who paid for Amazon renewals. They are asking the court to declare Amazon’s practices illegal and to order the company to pay class members actual, compensatory and punitive damages.
The case is Nacarino v. Amazon.com, Inc, 22-cv-02713, U.S. District Court, Northern District of California (San Francisco).
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
