Audible class action over credit expiration survives dismissal

Audible credits class action lawsuit overview:

• Who: A Washington federal judge denied Audible’s motion to dismiss a class action lawsuit filed by a consumer.
• Why: The consumer alleges Audible violated Washington state law by allowing its membership credits to expire.
• Where: The Audible class action lawsuit was filed in Washington federal court.

A Washington federal judge has refused to toss a proposed class action lawsuit alleging Audible violated state law by allowing its membership credits to expire.

U.S. District Judge Tana Lin denied Audible’s dismissal bid on Sept. 19, finding the plaintiff consumer had adequately alleged that the Amazon-owned audiobook giant violated Washington’s prohibition on gift certificate expiration dates.

California resident Jonathon Hollis filed the Audible credits class action lawsuit in December 2024, seeking to represent a nationwide class of consumers who bought Audible credits that later expired.

According to the Audible lawsuit, Hollis received monthly credits as part of a premium Audible membership program, but some of them expired after a year before he could redeem them in exchange for audiobooks or other audio titles.

At issue is a Washington statute that bars retailers from issuing gift certificates with expiration dates and that defines such certificates as instruments that promise the bearer “the value or credit shown in the record.”

Audible argues Washington law only applies to certificates with stated cash amount

Audible argued the Washington statute only applies to certificates with a stated cash amount. While no court had addressed that question, the company’s counsel said courts have interpreted a Minnesota state law similarly in two cases: Wells v. Holiday Cos. Inc. and Hughes v. CorePower Yoga LLC.

However, Judge Lin said that unlike the Minnesota gift card law, the Washington statute explicitly calls for the statute to be construed to protect consumers.

Audible also argued the credits cannot qualify as gift certificates because they cannot be gifted or transferred. However, Judge Lin determined the statute’s language does not reflect such a distinction.

“Here, whether or not the Legislature intended for the gift certificate statute to only apply to vouchers which are transferable, it did not include such a requirement in its definition of ‘gift certificate,’” the judge wrote.

Meanwhile, Audible has been hit with another lawsuit alleging the company enrolled Amazon customers in memberships without their knowledge or consent.

What do you think of the judge’s decision to allow the Audible credits class action lawsuit to continue? Tell us your thoughts in the comments.

The plaintiff is represented by Jonas Jacobson and Gabriel Doble of Dovel & Luner LLP.

The Audible credits class action lawsuit is Hollis v. Audible Inc., Case No. 2:24-cv-01999, in the U.S. District Court for the Western District of Washington.

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