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How does it work? Recently, this trend has come back to litigation concerning automatically renewing and continuous service subscriptions, offers and services, largely occurring online and in digital form.
And I should note that California is not the only state that has such comprehensive and nuanced compliance requirements. Share This.
As stated herein, most such allegations are disingenuous. The last possible renewal date varies by extension and is not necessarily the same expiration date.
Indeed, and saw a flurry of agency enforcement activity around renrwal renewing product and service offers by e-commerce and other online companies such as eHarmony. For example, the last possible renewal date may be several days before the official expiration date.
Thus, while businesses may not be intentionally trying to deceive, fool or misdirect their loyal customers, good faith business practices may still hurt at the end. If the last possible expiration date is 6 days before the expiration date then the domain will be renewed automatically 37 days before the expiration date.
To satisfy the injury-in-fact requirement of the Unfair Competition Law, plaintiffs allege that they were deceived and would not have placed the recurring order, and would not have paid any money to the defendant Autonatic they known the defendant business was going to enroll them in an automatically renewing subscription. Reprinted with permission.
If the last possible renewal date is after the expiration date, then the automatic renewal will occur 31 days before the expiration date instead. But these defenses, while relatively convincing and practical in theory, still would not cut it when dealing with the Federal Trade Commission or California agency investigations or enforcement actions.
While many businesses would be willing to litigate Atomatic relatively novel issues before the courts, the unfortunate reality is that extended class action litigation can be costly and disruptive to the business, with existing risk with respect to ultimate outcome.
