Le Tote, Inc. is one of a growing number of companies who provide goods and services by subscription or continuous service agreements. But the complaint for this class action alleges that Le Tote sells to consumers in California without obeying California laws on laws on automatic subscription renewal or continuous service agreements.
The class for this action is all persons in California who, within the applicable statute of limitations period and up to June 30, 2017, bought any product or service with an automatic renewal offer, as defined by § 17601(a) of the Business and Professions Code, from Le Tote, Inc. or its predecessors or affiliates, from the website letote.com.
Le Tote rents and sells clothing and related products, such as handbags. Customers sign up for one or two “totes” or clothing deliveries per month, wear the clothing, then later send them back. If they particularly like an item, they may buy it at a reduced price. The complaint claims that the monthly clothing plans qualify as automatic renewal or continuous service plans under California law.
California’s Business & Professions Code sets forth requirements for automatic renewals. The complaint alleges that Le Tote did not comply with the requirements in a number of ways.
First, the complaint says that when Le Tote made the offer, it did not present the terms of the automatic renewal or continuous service offer in the clear and conspicuous manner required, in visual proximity to the request for consent, before the agreement was finalized.
Second, the company charged consumers’ credit cards, debit cards, or other payment methods, the complaint says, without first getting their “affirmative consent” to the agreement containing the auto renewal or continuous service offer.
Third, the complaint says, the company did not provide consumers who signed up with an acknowledgement that included the terms of the auto renewal or continuous service offer, the cancellation policy, and the directions for cancelling the agreement, in a form that can be easily retained by the consumers.
The complaint reproduces screenshots from the company’s website to support its contentions.
There is a potential bright side for California consumers who did not mean to agree to endless subscriptions. The law says that when companies do not obtain affirmative consent to their agreements, all of the merchandise or products sent to customers under those agreements are deemed to be an unconditional gift. The complaint says the plaintiffs and class members may therefore use the products or dispose of them as they like, with no obligation to Le Tote.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Le Tote Clothing Rental Subscriptions California Complaint
February 22, 2019
Le Tote, Inc. is one of a growing number of companies who provide goods and services by subscription or continuous service agreements. But the complaint for this class action alleges that Le Tote sells to consumers in California without obeying California laws on laws on automatic subscription renewal or continuous service agreements.
le_tote_auto_renewal_complaint.pdfCase Event History
Le Tote Clothing Rental Subscriptions California Complaint
February 22, 2019
Le Tote, Inc. is one of a growing number of companies who provide goods and services by subscription or continuous service agreements. But the complaint for this class action alleges that Le Tote sells to consumers in California without obeying California laws on laws on automatic subscription renewal or continuous service agreements.
le_tote_auto_renewal_complaint.pdf