Time Magazine Class Action Alleges Illegal Auto Renewal Scheme

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A pair of plaintiffs have filed a proposed class action lawsuit against Time Inc., and its subsidiary Synapse Group Inc., alleging the companies participate in an illegal scheme to automatically renew magazine subscriptions.

Plaintiffs Shannon Dale Price and Cheryl Edgemon filed their lawsuit in California state court alleging that Time, and its related companies, falsely advertised magazines at little to no cost, but then charged consumers a much higher rate when the subscription automatically renewed.

“Under the guise of providing consumers the opportunity to obtain magazines either free or at a discounted price for a specific term, defendants actually enroll consumers in a program that automatically renews the subscriptions from year-to-year and results in annual charges to the consumer’s credit card, debit card, or third-party payment account without providing the requisite disclosures and without obtaining the requisite authorizations required by California law,” the lawsuit claims.

Price alleges that he had made a purchase at an online retailer, and upon filling out a follow-up survey, received a “Complimentary $100 Reward” to receive a year subscription of up to five complimentary magazines for the cost of $2 per magazine (for processing fees or for the magazine cost itself).

After selecting two magazines as part of the reward, the plaintiff says he paid a total of $4 with his credit card. Price claims that the defendants renewed his subscriptions the following year at a much higher price, charging his credit card $71 to renew the magazines, which is a price increase of approximately 1700%.

According to Price, apparently there was a paragraph in small print that read, “All selections come with automatic renewal features. Click ‘Continue’ for full details.” He claims a paragraph on the next page included information about “Important Reward Details” in tiny print that referred to the automatic renewal.

“Those sentences are a legal nullity because, as a matter of law, the selection of magazines in response to the defendants’ ‘Complimentary $100 Reward’ could not give rise to an agreement for automatic renewal or continuous service,” the lawsuit states.

Plaintiff Edgemon recounted a similar narrative in the class action lawsuit, and like Price, alleges that her credit card was charged for the renewal without her express consent.

The plaintiffs allege a total of five counts against Time and Synapse including false advertising, violation of the Consumers Legal Remedies Act, conversion, violation of the California Unfair Competition Law, and unjust enrichment.

In addition to seeking class certification, the plaintiffs are demanding a jury trial and are requesting damages in the form of restitution, punitive damages, attorneys’ fees and costs, prejudgment interest and any additional relief as deemed just and proper by the Court.

The plaintiffs are represented by Zach P. Dostart and James T. Hannink of Dostart Hannink & Coveney LLP.

The Time Magazine Auto Renewal Class Action Lawsuit is Shannon Dale Price, et al. v. Synapse Group Inc., et al., Case No. 37-2016-00016453-CU-MC-CTL, in the Superior Court of the State of California, County of San Diego.

UPDATE: On Sept. 23, 2016, Synapse asked a California federal court to toss a proposed class action lawsuit claiming they failed to adequately inform customers of the automatic renewal terms for their magazine subscriptions.