Google class action alleges AI subscriptions use false reference pricing

Google class action lawsuit overview:

• Who: Plaintiff Peejay Reyes filed a class action lawsuit against Google LLC.
• Why: Reyes alleges Google uses false reference pricing to market its Gemini artificial intelligence (AI) subscription products.
• Where: The Google class action lawsuit was filed in California state court.

A new class action lawsuit alleges Google uses false reference pricing to market its Gemini AI subscription products.

Plaintiff Peejay Reyes claims Google advertises its AI Pro and AI Ultra products at a discounted introductory price despite the fact they are always offered at a reduced rate.

“By presenting these subscriptions as discounted from purported regular prices that are not bona fide, [Google] falsely conveys to reasonable consumers that they are receiving a temporary price reduction or special deal, when no such genuine discount exists,” the Google class action lawsuit says.

Reyes wants to represent a nationwide class and California subclass of consumers who purchased a Google AI Pro or AI Ultra subscription at a discounted price from a strikethrough or advertised reference price on Google’s website or application.

Reyes accuses Google of violating California’s Unfair Competition Law and Consumers Legal Remedies Act and demands a jury trial.

Google AI subscription discounts last for months, class action claims

Reyes argues Google advertises its Gemini AI products with a strikethrough “regular” price intended to convey that consumers are receiving genuine price reductions. In reality, Reyes claims Google’s Gemini subscription products are always offered with a free or discounted introductory period.

In comparison, the Google class action lawsuit references competitors, such as Perplexity Pro and SuperGrok, claiming they do not deploy the same or similar tactics but instead offer fair and straightforward pricing.

Reyes claims the Google AI Ultra product is advertised with a strikethrough “regular” price of $249.99 per month, yet the product has never been sold at that price when consumers initially subscribe because it is always offered at a discounted rate, such as $124.99 per month for multiple months.

Similarly, the Google AI Pro product is advertised with a strikethrough “regular” price of $19.99 per month, yet the product has never been sold at that price at the point of purchase, the complaint argues.

Reyes claims he purchased the Google AI Ultra product for $124.99 per month for the first three months. At the time of purchase, Google advertised the product with a struck-through “regular” price of $249.99 per month.

According to the plaintiff, the class action lawsuit aims to remedy Google’s allegedly unlawful and deceptive business practices in connection with misleading introductory sale promotions of its AI subscription products.

Reyes claims he reasonably believed he was receiving a significant, limited-time discount on the product and would not have purchased the AI subscription at that time or price if he had known the truth.

Recently, Google and its parent company Alphabet Inc. agreed to a $68 million open class action settlement to resolve claims that Google Assistant recorded user communications in violation of privacy rights.

What do you think of the allegations made in this Google AI class action lawsuit? Tell us in the comments.

The plaintiff is represented by Craig W. Straub, Brandon Brouillette and Zachary M. Crosner of Crosner Legal P.C.

The Google class action lawsuit is Reyes v. Google LLC, Case No. 5:26-cv-04700, in the Superior Court of the State of California for the County of Santa Clara.

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