Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Follow us on Twitter and Facebook for the latest Class Action Settlement News!
Microsoft Xbox LIVE Gold Subscription Class Action Lawsuit
By Matt O’Donnell
Irate gamers have filed a class action lawsuit against Microsoft accusing the company of double-billing subscribers to its Xbox LIVE Gold service, an online multiple game system with 23 million subscribers.
Lead plaintiff Ryan Graves claims in the Xbox LIVE Gold class action lawsuit that Microsoft’s prepaid subscriptions are “governed by vague and onerous terms of use” that allow Microsoft to double-bill people who do not renew their subscription before it runs out. When they do renew, Microsoft charges them for the new subscription and to “renew” their old one, and then refuses to refund their money for one of the subscriptions.
Here’s how it works, says the Microsoft class action lawsuit:
“In providing its Xbox LIVE Gold gaming services, defendant requires consumers enter into prepaid subscriptions, governed by vague and onerous terms of use. These agreements purportedly are meant to automatically renew, using the payment method on file — in the form of a credit card, debit card, or prepaid Xbox card. If the payment method on file is no longer valid at the time set for renewal, then defendant, pursuant to its terms of use, terminates the users’ access to the service.
“Afterwards, if former members wish to again subscribe to Xbox LIVE Gold, then they must purchase an entirely new subscription — a process which requires consumers to provide defendant with a new and valid method of payment. ?
“Once defendant receives the new payment method, defendant renews the previous, expired subscriptions, without authorization, by billing the new payment method for a renewal of the previous subscription. This is done at the same time the customer is billed for the new, authorized, subscription purchase. This results in consumers, including plaintiff Graves, receiving one subscription for the price of two. Plaintiff Graves has complained to defendant about the unlawful and unauthorized double billing, yet defendant refuses to provide him with a refund.”
Graves claims in the Xbox LIVE class action lawsuit that Microsoft customer support told him Microsoft would not refund his double billing.
“During that same conversation, Microsoft informed Graves that the duplicate charge was not a mistake. The representative further explained that one charge was for the authorized subscription that he manually signed up for on March 4, 2011, and the other was for the automatic renewal of his previous expired subscription. The representative informed Graves that he had two years worth of subscriptions that Microsoft would allow to run consecutively. When Graves responded that he did not want two years of subscription, but rather he wanted a refund for the unauthorized charge, the representative again refused,” says the class action lawsuit.
The Microsoft Xbox LIVE subscription class action lawsuit is brought on behalf of all U.S. residents who purchased an Xbox LIVE Gold subscription with on payment method, subsequently purchased another Xbox LIVE Gold subscription using a different payment method, and were also charged an automatic renewal charge on the new payment method, relating to the initial subscription.
It is seeking restitution and statutory, treble and punitive damages for Breach of Contract, Unjust Enrichment, Conversion and Violation of the Electronic Funds Transfer Act.
A copy of the Microsoft Xbox LIVE Gold Subscription Class Action Lawsuit can be read here.
Updated August 4th, 2011
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
Top Class Actions Legal Statement
17 thoughts onMicrosoft Xbox LIVE Gold Subscription Class Action Lawsuit
Is this lawsuit still active?
Today is 11/18/2021 and this is still happening to me.
Same ,,,, I finally had to cancel all my credit cards I ever used with Microsoft , every year they charged. Even though the accounts were unused. They won’t reimburse or cancel when calling customer service. They deserve to be sued.
I have been billed numerous times in 7 yrs even after cancelling my debit card. They illegally linked my bank account to the Gold account. Microsoft changes their billing name to charge my account after I blocked them. Called and they can’t do anything! I’m ready to hop on the “sue train”.
The same thing has been happening to me. Back in February I had to cancel my credit card with my bank because of the exact same issue. My bank contacted Xbox to have the charges removed and to have the subscriptions cancel. However, after opening a new credit card with my bank and them blocking subscriptions somehow Microsoft manage to still charge my new card subscription charges starting back in August until now. My son XBox doesn’t even work anymore and he was blocked months ago. I just contacted my bank to have these charges reversed and then blocked again. The first time Microsoft was charging my card under Microsoft/ Microsoft Live. This time my bank confirm that they switch their name to Microsoft ultimate so that they can charge my new credit card. My new credit card information was never entered until the Xbox for subscriptions. The credit card that was canceled was the one that was used and the subscription was cancelled as well with the old credit card. And somehow they still managed to charge my new account. This is ridiculous and definitely unfair and ! This is happening to a lot of people and Microsoft deserve to be sued!
I buy a gold card first couple times it works out in thew phone or box for over a couple years now Month to month basis then went to tri monthly I bought a card from 711 come home use my phone to put it on it says it goes threw then later go to play turn console on and nothing it’s live but not gold so put I the code again and it says not valid have a hard time my mom says here’s for your bday present covers me a three month online perches it with a card only has the exact amount.hear it’s is a the end of three month. From staterbros my girl gets a card for the three months after my bday . Deja Vu exact same thing happened like when I got one from 7-Eleven so I now know for sure that it’s not 711 but 100% sure that it’s gold diggers robing that can’t afford or the time or able they enjoy ripping off like miners that have no voice..when’s the court date or petition or what ever I can do to help stop the thives
I have been billed as well even after speaking to a representative and told them to cancel this account due to not having a gaming system any more. But 5 payment was still taken off of my card. After it was cancelled.
They need to be ashamed taking people money that way
I jave been billed as well even after speaking to a representative and told them to cancel this account due to not having a gaming system any more. But 5 payment was still taken off of my card. After it was cancelled.
They need to be ashamed taking people money that way
Acquired a free subscription to Xbox Game Pass upon purchase of a new Xbox One S. Without knowing, automatic renewal was turned on when confirming the code on the card for the free subscription. On March 3rd, 2020, I received a notification that I owed $9.95 to renew Xbox Game Pass. On that date, the Game Pass subscription was suspended until $9.95 was paid.
It is now currently June 8th, 2020 and there is no option to turn off automatic renewal or cancel the free subscription that was for a limited time until the $9.95 is paid.
If free subscription time ran out and the next month at the supposed renewal time the Game Pass subscription was suspended by Microsoft on March 3rd, 2020 which indicates that it is not able to be utilized, yet you have to pay $9.95 for something you can’t utilize after the sites date of expiry/renewal, yet they force you to pay $9.95 for something suspend at the end of a free trial until you pay for the next renewal in order to cancel a free subscription.
They lock you in forcing you to pay for something they suspend just to cancel it even though you can’t utilize it, you didn’t utilize it, you can’t cancel until you pay for what you didn’t utilize because they suspended it while they automatically turned on automatic renewal as an automatic feature when you subscribe to Game Pass whether it’s a code-based free trial, or initial paid subscription.
I’m pretty certain this sort of issue is an illegal business practice and falls somewhere under the consumer protections laws.
Forcing someone to pay for a service they didn’t utilize because it was suspended after a free trial ended and you have to pay to utilize it after the end of a subscription to begin another round and you won’t let the consumer cancel or use the service until they pay ahead of time, forcing the consumer to pay for ‘goods and/or services’ they weren’t allowed access to by the service provider under the pretense of an automatic renewal catch then claim you have a debt of $9.95 just to cancel something you didn’t knowingly authorizing that you didn’t have access to, that you have to pay upfront for to use anyway…
That’s bad business practice. Forcing a payment for goods and services not recieved, double charging…forcing you to commit to paying…
That is most certainly an illegal business practice…I’m almost certain it is.
I don’t feel I want a refund of $9.95…However, I do feel it is appropriate to be able to cancel without being forced to pay for something I didn’t want, didn’t have access to or recieve what I’m being charged for that I didn’t intend to renew as a paid ahead of time service…just to cancel…I feel trapped.
I’m disabled and Autistic…Can someone tell me how such a business practice is justified since I’m locked into paying it? I’m not certain I understand completely why I am forced to pay for something I didn’t want and didn’t recieve and didn’t know the system turned on automatic renewal without notice…and I have to pay it just to cancel it even if I didn’t use it because I didn’t pay for it up front at renewal time…
I just want the fee wiped so I can cancel the service I didn’t recieve anyway.
Something is wrong there and they won’t let me cancel the service I didn’t recieve or have access to…I feel robbed.
I too have been double billed 59.95 without authorization and paypal nor microsoft will refund my money I am beyond upset……this is theft
I’m having the same issues with my step sons live account now, says he owes 9.99 for last month. The account is linked to a debit card which can’t be over drawn. Bought a $60 year card and will not allow us to activate it cause he owns money. What steps should I take to fix the issue. Further more when I canceled my live account I was charged for a month three months after I had canceled my subscription. After all these issues with Microsoft going to switch to Sony.
Where’s the petition where’s the people that work for eather xbox or microsoft they are a bunch of premeditated scandalous scam artists
… switch to sony dont let the destroy playstation like they destroyed my ex’s box %)
xbox currency cannot be used for xbox live, the money just sits there no refunds, no nothing.can be used for game purchases,dlc, and whatever else but not live. not stated anywhere on card or on website microsoft.com. this affects anyone who has bought microsoft cards or store codes with the intent of renewing. please start a class action lawsuit. misleading sales practice on both microsoft and all retailers.
Recently purchased time for my Xbox and they charged me twice its bs I want my money back now my bank account went negative and I’m negative almost 100 because of the overdraw fee this is bs really screwed me. I want my money back asap