Consumers Preyed Upon by Automatic Renewal Fees Without Prior Notification

If you are struggling with shady subscription-based services making it difficult to cancel your subscription or automatically charging you for renewal without your consent, you are not alone. Federal agencies like the Federal Trade Commission (FTC), have recognized these services’ tactics as schemes to keep your money trapped as a constant stream of income for the company and to take your hard-earned money without your consent from right under your nose.

Businesses of all types have begun adopting a shady model known as “negative options” which may be costing their customers millions. According to the FTC, a negative option is when you are automatically billed (auto-renewal) when you did not specifically say not to bill you. In other words, your silence is taken as consent to the business to be charged an auto-renewal fee.

Many businesses not only charge auto-renewals if the consumer does not explicitly cancel the service, but also charge a cancellation fee if a consumer does their due diligence and cancels the service, and regulating agencies are taking notice. Many even employ evasive practices to make it difficult for consumers to cancel in the first place. MLG believes there may be legal recourse for consumers who have been automatically charged for renewals to subscriptions or following the end of a free trial.

The FTC Has Taken Notice of Predatory Auto-Renewal Fees

The FTC is bringing action against internet service provider Vonage for their predatory junk fees and creating obstacles for those who try to cancel their services. However, businesses nationwide employ these predatory tactics to this day, costing consumers their hard-earned money for products or services they may not want or need.

If you or a loved one has been victimized by predatory auto-renewal fees on subscription services, contact an MLG Financial Lawyer today to learn if you qualify to bring a lawsuit! Call 855-997-0614 or complete the form to schedule your free consultation!

Auto-Renewals Are Hurting Consumers

Companies frequently bury auto-renewal terms in fine print, making it difficult for consumers to opt out or cancel, and some may employ aggressive tactics to discourage cancellation. This can result in consumers overpaying for services, feeling trapped in subscriptions they did not consciously choose to continue, and even struggling to dispute unauthorized charges.

Frequently Asked Questions

 

Why are auto-renewals considered predatory?

 

Auto-renewals are often seen as predatory because they exploit consumers’ convenience and complacency. Companies design these systems to automatically charge customers for subscriptions or services without their explicit consent. This can result in consumers paying for services they no longer use or want, wasting their money.

Companies benefit from auto-renewals by ensuring a steady stream of revenue. When consumers forget about their subscriptions or find it challenging to cancel, businesses can continue to charge fees or sell additional products or services without having to actively engage with customers. This creates a consistent income stream for companies, often at the expense of consumers who may be unaware or unable to opt out.

If you believe you have been unfairly charged auto-renewal fees, contact a Financial Services Attorney from MLG to learn if you could bring a lawsuit and recover compensation. Our attorneys are well versed in the financial sector and are familiar with the legal complexities of auto-renewals. With over 1$ billion recovered for our clients, we have the expertise and knowledge needed to secure your rightful compensation.

Regulations regarding auto-renewals vary by jurisdiction, but many countries have started to take action to protect consumers from predatory practices. Some regulations require companies to clearly disclose auto-renewal terms and make it easier for customers to cancel subscriptions. However, enforcement can be challenging, and consumers should remain vigilant and report any instances of predatory auto-renewals to relevant authorities or consumer protection agencies for further investigation and potential action against offending companies.

How to Start Your Potential Case

If you believe that you have fallen victim to auto-renewal fees, talk to an MLG lawyer to find out if you have a case and could be entitled to compensation. Follow these steps:

  • Fill out our form with your information
  • Set up your free consultation
  • Meet with our Financial Lawyers
  • Discuss your potential case
  • Discuss your next step

Getting You Justice for Unfair and Predatory Corporate Practices

MLG lawyers are attorneys with integrity. We’re dedicated to safeguarding consumers like you from various financial issues through our expertise in law. Our 30-year-long history of strong, dedicated class action legal representation, serving the Inland Empire and the entire U.S., has cemented our reputation of being one of the strongest class action firms in California and a nationally recognized presence in nationwide litigation. Our Financial lawyers have proudly recovered millions for our class action clients, including- a $203 million verdict in a class action against Wells Fargo for unfair overdraft fees imposed on its California customers.

Call 855-997-0614 or complete our form today to see how we can help you.

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