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Panera Unlimited Sip Club class action lawsuit overview:
- Who: Ryan Lee filed a class action lawsuit against Panera Bread Company.
- Why: Lee claims Panera’s Unlimited Sip Club subscription does not actually allow subscribers to receive unlimited drinks and that the company fails to make it clear how to cancel the subscription, which auto-renews.
- Where: The class action lawsuit was filed in Michigan federal court.
Panera Bread misleads consumers with its Unlimited Sip Club subscription by not actually allowing unlimited drinks and not clearly outlining how to cancel the auto-renewing subscription, a new class action lawsuit alleges.
Plaintiff Ryan Lee claims consumers with $10.99 monthly subscriptions to Panera’s Unlimited Sip Club are not actually able to redeem unlimited free drinks but rather only allowed to get a free beverage every two hours.
“Consumers expect a beverage subscription represented – directly or indirectly – as an unlimited service to allow for an unlimited number of redeemed drinks and refills,” the Panera class action states.
Consumers enrolled in Panera’s Unlimited Sip Club are automatically charged for their first month following a one-month free trial period, which the Panera class action claims is used to “entice” customers to sign up.
Further, the lawsuit claims Unlimited Sip Club subscribers must remember to cancel their subscription before their free trial period is up, something he argues “imposes a burden on their time and attention.”
Panera class action alleges company fails to clearly state how to cancel Unlimited Sip Club subscription
Panera also fails to clearly state how to cancel a Unlimited Sip Club subscription, which Lee argues is set to auto-renew to make it less likely that a customer would end their subscription, according to the Panera class action.
“Psychological studies show that consumers tend to procrastinate on mundane tasks especially where they are deemed to be boring or difficult, which includes cancelling subscriptions,” the Panera class action states.
Lee claims Panera is guilty of fraud, unjust enrichment and negligent misrepresentation and in violation of the Michigan Consumer Protection Act, the Magnuson Moss Warranty Act and several state consumer fraud acts.
He demands a jury trial and requests declaratory and injunctive relief along with an award of monetary, statutory and/or punitive damages for himself and all class members.
Lee wants to represent a Michigan class and multistate consumer fraud subclass of individuals who have subscribed to Panera’s Unlimited Sip Club.
A consumer filed a separate class action lawsuit against Panera last year over claims the company charges a secret delivery fee by increasing the price of food for customers who order for delivery.
Have you subscribed to Panera’s Unlimited Sip Club? Let us know in the comments!
The plaintiff is represented by Spencer Sheehan of Sheehan & Associates, P.C.
The Panera Unlimited Sip Club class action lawsuit is Lee v. Panera Bread Company, Case No. 2:22-cv-11958, in the U.S. District Court for the Eastern District of Michigan.
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19 thoughts onPanera class action claims Unlimited Sip Club not actually unlimited, auto-renews subscriptions
They offered me a 3 month free trial, it was only 30 days. I did use it once. I canceled the membership and after I still got charged and I got charged. The unlimited sips isn’t unlimited and it also limits what drinks and sizes you can have. I was under the impression I can pick any drink I want. I wrote customer service and they don’t make it easy to contact them. They make you wait instead of providing a speedy solution.
I had the same issue. With unlimited sips club $200 did not know how to cancel. Only way was to cancel my card
Unlimited not unlimited. Every two hours is not unlimited
I have definitely faced this problem. And Panera support failed to refund me.
Didn’t realize I was continuing to be charged after was told membership canceled. Charged over $400 in fees and never used it a single time. Want to be added to class action. Q: do they record when users use the subscription for free drinks? If so, they can check their records & confirm I never used it. While I should have noticed it sooner, they incurred no cost, I received no benefit/service, they got free use of my money, and they obviously didn’t actually cancel the membership when I had requested it. They should refund my money but are refusing to do so. They are scum.
I was charged almost $200 and one sitting when I signed up for the unlimited and didn’t realize that they were going to charge me that much. I think it’s fraud and I believe I should get a full refund at minimum. I would like to be added, if this goes to settlement.