Spotify USA Inc. is facing a class action lawsuit alleging consumers who signed up for the music streaming service were unknowingly charged a monthly renewal rate after the trial period ended.
Plaintiffs Gregory Ingalls and Tony Hong filed the Spotify class action lawsuit earlier this summer in the California federal court.
They claim that they were not properly notified about the terms of Spotify’s automatic renewal policy and were unaware that they would automatically be charged $9.99 per month at the end of the trial period.
The Spotify class action lawsuit accuses the music streaming company of failing to comply with California law regarding the automatic renewal terms.
Specifically, the music streaming service class action lawsuit alleges that Spotify failed to present the terms of the automatic renewal service in a clear and conspicuous manner prior to the completion of the initial order for a Premium Subscription Service, charged consumers’ credit or debit cards without first obtaining their affirmative consent to the automatic renewal offer terms, and failed to provide an acknowledgement including the automatic renewal terms in a form that could be retained by the consumer.
According to the Spotify automatic renewal class action lawsuit, Ingalls signed up for a 30-day free trial followed by a paid subscription to the music streaming service on June 8, 2013. He says he was sent an acknowledgement by Spotify that failed to include the automatic renewal terms and information about how to cancel the service before his first payment was due.
Ingalls says he was charged $9.99 on July 8, 2013 for an automatic renewal or continuous service for Spotify, but that he had never given his consent to be charged for an automatic renewal.
Similarly, Hong claims he paid 99 cents for a three-month trial of Spotify, starting on about Dec. 29, 2014. Although he received an acknowledgement from Spotify, it allegedly failed to include information about the automatic renewal terms and cancellation policy.
Hong’s credit or debit card was subsequently charged $9.99 per month, starting in March 2015, according to the Spotify class action lawsuit. He says the monthly fee was charged even though he never provided affirmative consent to the agreements containing the automatic renewal or continuous service offer terms.
Ingalls and Hong claim that Spotify failed to adequately notify consumers about the need to terminate the subscription after the trial period ended in order to avoid being charged the $9.99 per month automatic renewal rate.
By filing the Spotify automatic renewal class action lawsuit, Ingalls and Hong seek to represent a Class of U.S. consumers who purchased a Premium Subscription Service through www.spotify.com since June 23, 2012. They also seek the certification of two subclasses: Class Members who purchased a Premium Subscription Service in connection with a free trial period and those who purchased a Premium Subscription Service without a free trial period.
The Spotify class action lawsuit asserts violations of California’s Automatic Purchase Renewal Law and California’s Unfair Competition Law.
Ingalls and Hong also argue that the arbitration clause and the class action waiver clauses provided in Spotify’s terms and conditions are inapplicable and/or unconscionable. They seek an injunction, restitution, legal fees, and other relief deemed proper by the court.
The plaintiffs are represented by Gillian L. Wade, Sara D. Avila and Marc A. Castaneda of Milstein Adelman Jackson Fairchild & Wade LLP and Derek J. Meyer of LeonardMeyer LLP.
The Spotify Monthly Service Renewal Class Action Lawsuit is Gregory Ingalls and Tony Hong v. Spotify USA Inc., Case No. 4:16-cv-3533, in the U.S. District Court for the Northern District of California.
UPDATE: On Nov. 14, 2016, a federal judge denied Spotify’s motion to force arbitration, ruling that many of the “substantively unconscionable provisions” that form part of the arbitration provision could not be severed from the agreement, rendering it unenforceable.
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9 thoughts onSpotify Class Action Alleges Deceptive Automatic Renewal Policy
I would like to join the class against Spotify. I have been trying to cancel an account that I never opened for almost a year. Someone needs to stop them.
Just happened to me on August 2, 2020 (3 days ago): I was just checking my credit card statement and noticed a $9.99 charge from Spotify USA (with their logo). I don’t even have a Spotify account! So I tried looking up a customer service number, but they don’t have phone support. So I had to create an account (2 hours ago) through Facebook login to fill out their online form. Somehow Spotify retreived my FB profile pitcure and correct birthdate, but a completely different email that is not mine, nor associated with my Facebook account! I was not even able to update my account with my actual email address. After explaining the situation and submitting my complaint, there was a confirmation page that said they would get back to me at the email they had on file… the incorrect one which I cannot change. So I guess I will never hear back from them. Thankfully my credit card company immediately disputed the charge, closed my credit card account, and issued a new card. But I’ve had to spend all day today disputing this, changing all my auto-pay accounts to a new method until the new card arrives, and researching Spotify’s reputation… and, of course, I am not the only one having these issues. This has been happening to many people all over the world for many years. I am thankful it was only $9.99 and not multiple charges of $119.99, which has happened to others.
Yes, they just did the same thing to me. They swindled my credit card numbers out of me with a 99 cent 3 month trial membership. I marked it on my calendar and cancelled a few days before-I hardly used it. I deleted the app and haven’t used it since, but I just looked over that card’s charges and there were 5 for 9.99. They had better make good on this and reverse the charges that are outside of my banks 60 day period. I’ve seen just how many others have been screwed over by this. I hope I can get in on this class action lawsuit. I was not surprised to see this company had other copyright lawsuits against them. I guess they were trying to raise money to pay those off with this chicanery.
As a follow up to this, Spotify reversed all five charges that occurred on my credit card statement. We’re even.
Just as a follow up to this. Spotify responded to my emails and went ahead and reversed all 5 charges to my credit card.
UPDATE: On Nov. 14, 2016, a federal judge denied Spotify’s motion to force arbitration, ruling that many of the “substantively unconscionable provisions” that form part of the arbitration provision could not be severed from the agreement, rendering it unenforceable.
Told me it was free and after 3 months they kept automatically taking money
I eventually cancelled my subscription.
Sorry, I get excited and upset at once and spelling and grammar is forgotten, and comes out reading Blah-Blah-Blah, what he wrote, hard to follow.
Hell same thing with google. I had a 3 month free trial. marked on calander to cancel, the only way to cancel is on the google play page under hard to find settings, canceled and they kept on billing me for 4 months till my wife asked me, what was buying from google for 9.99 a month, for last 9 months. Tried to contact them on phone, was told that only way to cancel was from my google play account. Explained that I’ve done that. Requested refund for those 4 months, was laughed at and told too bad so said, sucks to be you. ( Was laughed at about refund the rest I just through that in because how I felt ). Any way I know how they feel and went through. The first time I cancelled was through my account page, I even showed it was cancelled hours later on my account online, but No. Never got a email showing any receipts or billing statements or any heads up that we just reached in your bank and took your money. If they sent a statement or receipts of the billings it would of never gone on 4 months. This is just me their should be a law that your trial ends, they have to have you resign up like you are going to purchase it for the first time. If you want the service they are offering or using. Not HA-HA they forgot and were gonna charge them forever till someone says something, but we still keeping your money that you paid on a trial service and forgot about. I think about the billions company’s make just off of that.