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On Monday, a class action lawsuit was filed in California federal court against LogMeIn Inc., a software provider, over allegedly unauthorized charges.
Lead plaintiff Britt Stoker alleges in his class action lawsuit that LogMeIn automatically renewed his account and charged him almost $1,500 last April. The plaintiff claims that he originally signed up for an account that cost $200, but was not informed his account would be automatically renewed. Additionally, when the plaintiff asked to cancel his account, he alleges that a representative from the company told him he had not been informed about the automatic renewal because he had opted out of email notifications. Stoker also alleges that LogMeIn refused to reimburse him for the renewal charges when he complained.
“Plaintiff had been a member of LogMeIn’s services since approximately 2006,” the LogMeIn class action lawsuit alleges. “Plaintiff’s annual fee, as agreed upon by the parties, was $199.00. On or about July of 2013, Plaintiff’s credit card was charged $199.00 by Defendant for a one year subscription for their services. On or about July of 2014, Plaintiff’s credit card was unexpectedly and unknowingly charged $1,499.00 by Defendant for another one year subscription. Plaintiff was never notified, called, or emailed regarding the price increase. Plaintiff never consented to be charged or to renew his account.”
“The dramatic price change from $199.00 per year, to $1,499.00 per year was a material change to any renewal agreement between Plaintiff and Defendant,” alleges the LogMeIn class action lawsuit. “Defendant never provided advanced clear and conspicuous notice to Plaintiff of the material change to his auto-renewal agreement. Defendant failed to notify Plaintiff in any reasonable manner. Defendant did not send Plaintiff any email, or other written correspondence, nor did Defendant attempt to call Plaintiff to inform him of the price increase. Defendant never provided Plaintiff with information regarding how to cancel in a manner that was capable of being retained by Plaintiff. On information and belief, Plaintiff alleges that Defendant’s policy and practice is to not notify its customers about such price increase.”
“Defendant’s undisclosed price hikes, coupled with any authorization to automatically charge consumers’ proffered method of payment, is an unfair, unlawful and fraudulent bait and switch scheme,” argues the plaintiff in his LogMeIn class action lawsuit.
According to the class action lawsuit, LogMeIn violates California law when it does not provide notice to its customers about charges for automatic renewal. The plaintiff also alleges that the company failed to provide consumers with information on how to cancel their accounts and charging for computers that hadn’t used a LogMeIn accounts.
Stoker further alleges that this April, LogMeIn charged him again for the account that he had asked to close. According to the class action complaint, the plaintiff seeks to represent a class of consumers from California who LogMeIn charged for account renewals without appropriate authorization. The plaintiff claims that LogMeIn has violated provisions of California’s business code and is seeking a return of any unauthorized withdrawals as well as additional penalties for violating the law.
Stoker is represented by Todd M. Friedman of the Law Offices of Todd M. Friedman.
The LogMeIn Unauthorized Charges Class Action Lawsuit is Stoker v. LogMeIn Inc., Case No. 5:15-cv-01258, in the U.S. District Court for the Central District of California.
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