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Unauthorized “Auto-Renewals” and Cancellation Fees

Consumer Fraud

Today’s consumers purchase many types of services, memberships, and subscriptions. Some of those automatically renew and require payment on a month-to-month or year-to-year basis. While some auto-renewal subscriptions, services, and memberships are legal, some may be deceptive or illegal auto-renewal scams. Once a consumer agrees to make a purchase, they may unknowingly agree to an auto-renewal, resulting in automatic monthly or yearly credit card charges or recurring bank account withdrawals. In many cases, consumers are unaware of the auto-renewal and may end up paying for months or years, or may have trouble cancelling the service, subscription, or membership.

Some services, subscriptions, and memberships with these types of payment arrangements or auto-renewal contracts include:

 
  • Gym and health club memberships
  • Subscription box services (retail products sent to a customer on a recurring basis)
  • People searching services
  • Music, book, and movie downloading sites
  • Alarm monitoring
  • Anti-virus protection
  • Magazine subscriptions
  • Credit protection services
  • Travel clubs or travel insurance
  • Online purchases that include “free trial“ offers
 

Several states have enacted consumer protection laws that are specifically designed to protect consumers from automatically renewing contracts and related auto-renewal fees. If you have experienced these types of issues, please contact our consumer rights lawyers to take action.