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Angie’s List Membership Fee Class Action Lawsuit
By Mike Holter
A federal class action lawsuit accuses Angie’s List of abusing its automatic renewal authority to take advantage of members, claiming it boosts prices for subscriber renewals without informing them and uses confusing language on its website.
According to the Angie’s List class action lawsuit, Angie’s List members must pay a “membership fee” in order to obtain access to the Angie’s List service. This membership fee schedule is published on the website for review by all prospective members. When a member enrolls in Angie’s List, they are quoted the applicable membership fee options. Enrolling members must then agree to automatic renewal of their memberships, and must allow Angie’s List to keep a valid credit or debit card number on file to facilitate the automatic renewal.
“In breach of the plain language of its Membership Agreement, Angie’s List instead automatically renews its members pursuant to a distinct – and more costly – ‘Membership Renewal Fee,’” the class action lawsuit states. “In this manner, Angie’s List has breached its own membership contract over one million times.”
The Angie’s List class action lawsuit says the company continues to deceive and defraud its members and prospective members through public statements “conveying the false impression that new and renewing members are charged pursuant to an identical membership fee schedule.” The so-called “Membership Renewal Fee” is never mentioned in the Membership Agreement nor in any other Angie’s List publications regarding its membership fees, the lawsuit says.
The Angie’s List membership fee class action lawsuit is brought on behalf of all current and former Angie’s List members whose membership was automatically renewed between August 14, 2006 and the present. It is seeking damages for breach of contract, deception and unjust enrichment.
A copy of the Angie’s List Membership Fee Class Action Lawsuit can be read here.
The case is Marie Fritzinger v. Angie’s List, Inc., Case No. 12-cv-1118 JMS-DML, U.S. District Court, Southern District of Indiana, Indianapolis Division. The Plaintiff and proposed Class is represented by Mindee J. Reuben and Jeremy S. Spiegel of Weinstein Kitchenoff & Asher, LLC.
Updated August 23rd, 2012
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2 thoughts onAngie’s List Membership Fee Class Action Lawsuit
They renewed me at $39.00 also, although my complaint was that I hadn’t read the terms carefully enough and didn’t realize that there was automatic renewal, which is scammy anyway. I complained and they reversed the charge, but my account is still active. I went to my Paypal account and removed them. Now they will have to email me when my membership expires. A good idea.
Just had my first renewal from Angie’s List and had this happen to me. Last year it was $23.40. This year they tried to charge me $50 just for the Home list, but it didn’t go through the first time, so they sent me an email. I checked the price list on their Website and it said $26 for my zip code. So I call them up and their rep told me that the charge went through yesterday for $39 (it hasn’t posted yet, so I’ll see). She claimed the $26 on the price list was for new memberships only, but it doesn’t say that on the webpage – it just says Membership Fees. Funniest thing was that while I was on the phone with her, the price list webpage kept changing. I kept opening new tabs and actually had three tabs open with their price list webpage. One for $26, the second said $35, and the newest one says $50. Each specific to my zip code. That is really, REALLY sketchy! It makes a person wonder if there can be any legitimacy to a review service that uses these business practices. I’ll bet this Class Action suit is a slamdunk.