Class Action Takes Issue with AAA Automatic Renewal Policy

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Last week, American Automobile Association (AAA) was hit with a class action lawsuit alleging that the company failed to clearly inform customers about its automatic renewal policy and then charged consumers’ debit and credit cards.

Lead plaintiffs Anthony Gee and Joseph Montegna filed the class action lawsuit in California federal court. In the filing, they allege that AAA’s “automatic renewal and continuous service offers are a scheme carried out by [AAA] which involves making money from California consumers through false, deceptive, and misleading means.”

The American Automobile Association, or “Triple A” as it is commonly known, is a “Motor club and leisure travel organization serving North America.” AAA offers various support services designed to assist car owners, as well as discounts on travel and leisure, according to the company’s website. “AAA offers different membership options designed to meet your needs and those of everyone in your household,” the AAA website says. “You may upgrade or add an associate to your membership at any time,” it continues.

Both plaintiffs allege that they purchased a membership for AAA services, but were unaware that AAA would automatically renew that membership. They argue that because AAA did not indicate to customers that their membership would be automatically renewed in a “clear and concise manner,” the company violated California business laws.

According to the AAA class action lawsuit, “charges to the consumer’s credit or debit card or the consumer’s account for an automatic renewal or continuous service without first obtaining the consumer’s affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms” violates California state law. The plaintiffs argue that AAA violated three of California’s business laws by automatically renewing their and other consumers’ memberships, including California’s law concerning automatic purchase renewals, California’s unfair business practice law, and California’s business laws prohibiting “unlawful, unfair, and/or fraudulent acts and practices.”

Both plaintiffs are residents of California. AAA is incorporated in Delaware and its principal place of business is in Florida.

The plaintiffs are seeking an order from the court enjoining AAA from offering automatic renewals, and requiring AAA to return renewal fees it obtained through the automatic renewal system, as well as attorney fees and costs. “Plaintiffs and similarly situated class members are entitled to injunctive relief under restitution pursuant to [California law] for all monies paid by class members under the subscription agreements from date of Plaintiffs’ and class members’ subscription purchase to the date of such restitution, at rates specified by law,” argue the plaintiffs in their class action lawsuit. “[AAA] should be required to disgorge all the profits and gains it has reaped and restore such profits and gains to Plaintiffs and class members, from whom they were unlawfully taken,” they continue.

They also seek to represent “[a]ll persons within California who purchased a subscription from [AAA]’s website as part of an automatic renewal plan or continuous service offer for products and services from [AAA]within the four years prior to the filing of this Complaint.”

Gee and Montegna are represented by Joshua B. Swigart and Sara Khosroabadi of Hyde & Swigart.

The AAA Automatic Membership Renewal Class Action Lawsuit is Gee v. American Automobile Association, Case No. 15CV0246 RBBBAS, in the U.S. District Court for the Southern District of California.