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Audible free trial terms violate California law governing subscription auto-renewals, a recent lawsuit contends.
Plaintiff Luis Licea is a blind consumer from California who says he accepted an Audible subscription earlier this year based on representations the trial was “free.” As a blind consumer, Licea says he wanted to both try out Audible’s services and see if the company complied with California law.
However, Licea contends the Audible free trial was misleading because it failed to “state in clear and conspicuous language” the company’s “full automatic renewal offer terms and full cancellation policy.” As a result, Licea was allegedly misled about the nature of the trial and the subscription.
Audible allegedly violates California laws with its misleading subscription terms and policies. Licea challenges several of the company’s practices, including three specific failures.
First, Licea says Audible fails to present its automatic-renewal terms — including a full cancellation policy — to consumers in a “clear and conspicuous manner.” Under California law, these terms should reportedly be presented in visual proximity to the Audible free trial consent agreement.
The Audible free trial lawsuit notes that, under California law, a clear and conspicuous disclosure must be listed in larger text or in contrasting type, font or color to the surrounding text.
A legal disclosure could also be of the same size as long as it is set off from the surrounding text by symbols or other marks.
Regardless of exactly how a disclosure is listed, California law requires the terms to be found in “a manner that clearly calls attention to the language.”
This prominent disclosure helps ensure that consumers like Licea do not agree to a subscription without viewing and understanding any relevant auto renewal terms.
Second, the plaintiff challenges Audible’s practice of charging consumer payment cards without first obtaining “affirmative consent” through a signature or an “opt-in” box which is separate from the larger subscription transactions.
Third and finally, Licea claims that Audible fails to provide an acknowledgement that includes vital information about the automatic renewal terms and how to cancel an Audible subscription.
This information is required under California law so consumers always know how to cancel their subscription.
Based on these and other violations of California auto-renewal laws, Licea claims the Audible free trial was unlawfully portrayed. As such, Licea seeks a refund for the subscription.
The Audible lawsuit notes companies such as the defendant may try to avoid the “stringent” California laws and their “severe” consequences through mandatory arbitration, class action waivers and other provisions. Licea is not aware of such provisions in the Audible free trial terms, leading him to note he would not be bound by such agreements if Audible attempts to “ambush” him with such terms.
This is not the first time Audible has faced legal action over its conduct.
Last year, the company agreed to give out 12 million free audiobooks as part of a class action settlement. Under the settlement, 8.4 million Audible users were also slated to receive reimbursements for overdraft charges incurred when the company allegedly charged backup payment cards without authorization.
The deal resolved claims the company cheated its users out of the credits they had paid for and were rightful owed. These actions allegedly violated gift card laws and other regulations.
Did you sign up for an Audible free trial? Share your experiences in the comment section below.
Licea is represented by Scott J. Ferrell of Pacific Trial Attorneys.
The Audible Free Trial Lawsuit is Luis Licea v. Audible Inc., et al., Case No. 5:20-cv-02360, in the U.S. District Court for the Central District of California.
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5 thoughts onAudible Lawsuit Says Free Trial Terms Violate California Law
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Yes I signed up and now they have been charging my card for 4 months and I don’t know how to contact them I’ve tried with no response
I did not know after free trial my CC would be charged.
I did not know the free trial would result in charges to my credit card for 14.95 every month.
I had a very similar experience with audible.com. I signed up for the free trial, but was charged the full $16 after the trial time finished, without any way of indicating that I wanted to continue my subscription. There was no way to receive a refund for this money, even though I cancelled the subscription the day of the charge.