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On Jan. 10, McAfee Inc. was hit with a class action lawsuit alleging it charges customers who enroll in its automatic renewal program higher prices than it charges other customers for identical products.
McAfee markets and sells subscriptions to its anti-virus software products, promising that its anti-virus programs will protect customers’ computers from hackers, computer viruses and other computer problems. It offers subscriptions under the names of McAfee AntiVirus Plus, McAfee Internet Security, and McAfee Total Protection.
McAfee software can be purchased directly from McAfee’s website or from retailers such as Wal-Mart, Office Depot or Amazon.com. Some users sign up for a free trial period for the software, and once the trial period expires, McAfee strongly encourages the users to purchase a paid subscription to the software.
According to the McAfee class action lawsuit, consumers who purchase a one-year subscription to McAfee software are automatically enrolled in the auto-renewal program, and McAfee charges the subscription fee to the customer’s credit card on file. The annual renewals continue each year, as long as a customer remains enrolled in the auto-renewal program.
“McAfee induces customers to enroll in its Auto-Renewal program by representing that the cost to automatically renew their McAfee anti-virus software subscriptions will be no more than McAfee’s normal, then-current price charged to other customers for the same products,” the McAfee class action lawsuit alleges.
However, McAfee allegedly charges auto-renewal customers more than it charges other customers for the same products, according to the McAfee auto-renewal class action lawsuit.
“For years, McAfee has consistently promised and reassured customers that under Auto-Renewal, their subscriptions will be automatically renewed at a price no higher than the normal, then-current price that McAfee charges other customers for the same software,” the McAfee class action lawsuit alleges.
“These representations and promises, which are made expressly in McAfee’s standardized Consumer Agreement and reinforced on McAfee’s website and elsewhere, are specifically designed by McAfee to lull customers into enrolling and remaining enrolled in the Auto-Renewal program.”
Plaintiff Sam Williamson alleges in the class action lawsuit that these representations are false because McAfee systematically charges auto-renewal customers a higher price than the current price the company charges other customers for the same products.
For example, Williamson alleges that customers who were enrolled in the auto-renew program for the McAfee AntiVirus Plus subscription and had their subscriptions auto-renewed on Jan. 1, 2014 would have been automatically charged $49.99 for a renewed one-year subscription. On the same day, McAfee offered other customers the same one-year McAfee AntiVirus Plus subscription for the lower price of $34.99, the McAfee class action lawsuit alleges.
Further, the McAfee auto-renewal class action lawsuit argues that the auto-renewal prices are not only higher than the prices McAfee charges other customers, but they are also higher than the Manufacturer’s Suggested Retail Prices (MSRPs) that McAfee sets for retailers.
By filing the McAfee auto-renewal class action lawsuit, Williamson seeks to represent a Class of consumers who incurred charges from McAfee for the automatic renewal of the following McAfee-branded products: McAfee AntiVirus Plus, McAfee Internet Security, and/or McAfee Total Protection. He also seeks to certify a Class of consumers who purchased or manually renewed McAfee software advertised as discounted from a represented former sales price.
Williamson is represented by Michael W. Sobol, Roger N. Heller and Nicole D. Sugnet of Lieff Cabraser Heimann & Bernstein LLP and Daniel M. Hattis of Hattis Law.
The McAfee Auto-Renewal Class Action Lawsuit is Sam Williamson v. McAfee Inc., Case No. 5:14-cv-00158-EJD, in the U.S. District Court for the Northern District of California.
UPDATE: On July 14, 2016, McAfee Inc. reportedly agreed to pay $80 million to resolve a class action lawsuit alleging it automatically renewed customers’ security software subscriptions at a higher price than promised.
UPDATE 2: The McAfee automatic renewal pricing class action settlement is now open! Click here to file a claim.
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27 thoughts onMcAfee Hit with Class Action Over Automatic Renewal Pricing
They did the same thing to me without my permission to charge me $49.00.
Just last month they said they are going into my computer to get all my information and also to get my passwords for everything. That is against the law for them to do this.
I have removed them from my computer and told my credit card if they try to charge me press charges against them. Also when I had them I knew they had been in my computer as I always heard a clicking noise. They deserve to have a lawsuit against them.
I never signed up for the automatic renewal, but they did this for years. Last year, I was “saved” because the credit card I had on file was changed. This was the best: It went to automatically renew in December for $89.99. When I went to address the issue of the renewal, I noticed a “coupon code” for checkout. I went to the main screen, and NO LIE, the same package they were going to renew at $89.00 was on the website for $49.99. When I applied the coupon code, I ended up paying $29.99 FOR THE SAME PROGRAM they were going to charge $89.99 for.
I knew they would be eventually caught; I just feel violated by them for like 10 years.
I have never signed up for auto renewal and the email this company had was five years old ! I’m bad for not seeing this $85.39 yearly charge since 2011 ugh …?
I called and cancelled what I never signed up for ! My guess after reading other people’s post that was when I bought a new computer ! I will be calling BBB Monday thou I know that won’t change anything ! I understand this company paid a huge fine but like the banks it is worth the fine ! And who gets this fine money ? I feel I got robbed !!!
I would like to be part of this shoot they took money out of my account also without my permission believe around $80 dollars.
UPDATE: On July 14, 2016, McAfee Inc. reportedly agreed to pay $80 million to resolve a class action lawsuit alleging it automatically renewed customers’ security software subscriptions at a higher price than promised.
I want to be include ino this law suit. My credit was charge many times for the renewal of McAfee.
I want in on this. The renewed without my permission and took money from my account.
I was charged $79.00 for Macaffee
I would like to join the class action, they took $79.00 out of my checking in Jan.
they did this to me….took $49.00 out of my checking account without asking my permission.