Paramount class action alleges company conducts automatic renewal scheme

Paramount subscription class action lawsuit overview:

• Who: Plaintiffs Trevor Adkins and Michael Shuler filed a class action lawsuit against Paramount Global.
• Why: Paramount allegedly fails to honor subscription cancellations for its Paramount+ streaming service and continues to charge for automatic renewals even after members cancel their subscriptions.
• Where: The Paramount class action lawsuit was filed in New York federal court.

Paramount Global unlawfully continues to charge consumers in an automatic renewal, even after they cancel their monthly subscriptions, according to a class action lawsuit filed Dec. 4 in New York federal court.

Plaintiffs Trevor Adkins and Michael Shuler say they subscribed to 30-day free trials of the Paramount+ streaming service and cancelled the Paramount subscription before the end of the free trial period.

However, Paramount allegedly charged each plaintiff a monthly fee on their credit cards after the 30-day trial period expired even though they canceled their subscriptions.

Paramount class action alleges company knows its cancellation scheme dupes customers

When they signed up for the free trial Paramount subscription, Adkins and Shuler had to provide their credit card information. The terms of the free trial stated that their subscription would automatically renew unless canceled, and that subscribers who cancel the Paramount subscription before the free trial period expires would not be charged, according to the Paramount class action lawsuit.

However, the plaintiffs say they were charged for Paramount automatic renewal after they canceled their subscriptions, and that their experience is not unique.

“Paramount is well aware that its membership cancellation scheme deceives consumers,” the class action lawsuit says. The plaintiffs claim “hundreds” of Paramount subscribers have complained of the company’s failure to honor their cancellations.

They point to consumer complaints on the Better Business Bureau’s website from subscribers who claim they were charged immediately after subscribing for a free trial or who were subject to Paramount automatic renewal even after they canceled their subscriptions.

Adkins and Shuler filed the Paramount class action lawsuit on behalf of themselves and a proposed class of U.S. consumers who cancelled their paid Paramount+ subscription but were subsequently charged by Paramount.

The class action asserts claims for violation of the federal Electronic Funds Transfer Act, unjust enrichment and conversion, as well as violations of New York, Michigan and Kentucky consumer protection laws.

Earlier this year, Paramount agreed to pay more than $120 million to settle claims by shareholders that the 2019 Viacom-CBS merger was unfair.

Were you charged for a Paramount automatic renewal after you canceled your subscription? Tell us about your experience in the comments.

The plaintiffs are represented by James J. Bilsborrow of Weitz & Luxenberg PC, Jeffrey D. Kaliel and Sophia Goren Gold of Kalielgold PLLC, and Christopher D. Jennings and Tyler B. Ewigleben of Johnson Firm.

The Paramount automatic renewal class action lawsuit is Trevor Adkins, et al. v. Paramount Global, Case No. 1:23-cv-10581, in the U.S. District Court for the Southern District of New York.

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