Apple Auto-Renew App Class Action Lawsuit Moves Forward

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Apple Inc. customers in California have two months to decide if they want to move forward with a class action lawsuit challenging the automatic renewal of “In-App Subscriptions” on consumers’ Apple devices, including iPhones, iPads, and Apple TV.

California residents who purchased a third-party automatically renewing app subscription through iTunes from Dec. 1, 2010 to Sept. 13, 2016 will be affected by the outcome of this lawsuit.

By remaining in the Class, California Apple customers will have the possibility of obtaining money or benefits that could come as a result of a settlement or trial. Those who are considered part of the certified Class but want to keep their individual rights to sue Apple separately regarding this alleged business practice have until Oct. 25, 2017 to opt out of the class action lawsuit.

In 2013, three plaintiffs alleged in a class action lawsuit that their subscriptions to certain Apple applications automatically renewed in violation of California law. The plaintiffs said Apple refused to issue a refund for the fees they incurred because of the auto-renew. Further, subscribers were not offered any cancelation instructions, according to the Apple class action lawsuit.

The plaintiffs say they unknowingly paid after setting up subscriptions through their Apple devices. One plaintiff alleges he was charged for several months after agreeing to a free week-long trial of Hulu Plus on his Apple TV. Another plaintiff says she incurred fees for access to Women’s Health Magazine through an app that charged her iTunes account.

According to the Apple class action lawsuit, consumers must create an account with Apple iTunes to access applications the company offers for its devices like iPhones and tablets. Consumers create an “Apple ID” and password and also must provide payment information to set up the service. Consumers comply with several legal agreements, but the plaintiffs allege that these agreements fail to inform consumers that subscriptions will be renewed automatically along with the charges.

The plaintiffs say California law requires that businesses using “automatic renewal offer terms” to make “clear and conspicuous disclosures.”

According to the class action lawsuit, Apple “failed, continues to fail, to first obtain Plaintiffs and class members affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms in violation of [California Business Code].”

“As a result, any goods, wares, merchandise, or products sent to plaintiffs and Class Members under the subscription plan shall for all purposes be deemed an unconditional gift to the consumer,” the Apple class action states.

A California Class was granted certification on April 21, 2017. The plaintiffs in the Apple class action lawsuit are seeking restitution and damages as well as an injunction against Apple.

Apple has fought the class action, saying that they do not have an obligation to disclose details about how and when subscription services will be renewed or that the company won’t refund renewal fees until after consumers purchase their products.

Apple also argued that the class action plaintiffs knew their subscriptions would auto-renew and that they didn’t even try to get a refund from the company after they were charged.

Class Members who wish to be excluded from the class action have until Oct. 25, 2017 to notify the Court. Failure to do so means that those Class Members are bound by the Court’s judgment or settlement agreement.

The parties have not reached a settlement agreement in this class action lawsuit.

Trial is scheduled to begin in the class action on June 4, 2018.

The Class is represented by Laura L. Ho, James Kan, Megan Ryan and Katharine Fisher of Goldstein Borgen Dardarian & Ho; and Julian Hammond, Ari Cherniak and Polina Pecherskaya of HammondLaw PC.

The Apple Auto-Renew Class Action Lawsuit is Siciliano v. Apple Inc., Case No. 2013-1-CV-257676, in the Superior Court of the State of California, County of Santa Clara.

UPDATE: On July 20, 2018, a judge preliminarily approved a $16.5 million settlement in an Apple auto renewal class action alleging the tech company automatically renews subscriptions without consumer consent.