This class action lawsuit alleges that virtual pet website operator Neopets, Inc. engaged in automatic renewals of customer subscription plans without making the clear and conspicuous disclosures about the terms, conditions and price of such renewals required by law.
Defendant Neopets is a corporation with its principal place of business in New York, NY and which is engaged in operating a virtual pet website where subscribers may create accounts, own virtual pets, play games and purchase virtual items using virtual currencies. Neopets provides on a monthly, four-month or twelve-month basis, a subscription for its virtual pet and games products/services. The cost for consumers is $7.95 per single month, $6.25 per month on the four-month plan and $5.83 per month on a twelve-month plan. The plaintiff in this case purchased such a subscription plan in California from Neopets.
According to the complaint filed in U.S. District Court for the Central District of California, Neopets made automatic renewal or continuous service offers to consumers without presenting the terms of those offers in a clear and conspicuous way and in visual proximity to the request for consent to the offer. It is further alleged that Neopets charged the plaintiff and other class members' credit or debit cards or other accounts without first obtaining their affirmative consent and failed to provide an acknowledgment that includes the terms of the automatic renewals or the company's cancellation policy.
It is argued that the actions of Neopets in operating its automatic renewal program constitute violations of several provisions of the California Business and Professions Code in that the language pertaining to recurring charges for automatic renewals was not rendered on the website in large or contrasting type or in some other manner designed to attract the consumer's attention. Neopets' failure to send an acknowledgment to purchasers which included the automatic renewal terms and cancellation procedures is also alleged to be a violation of California law.
The complaint seeks a declaration that Neopets violated multiple provisions of the California Business and Professions Code and Unfair Competition Law, requests an award of damages and full restitution in the amount of subscription payments made as well as injunctive relief and reasonable attorneys' fees and costs.
https://www.crunchbase.com/organization/neopets
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Neopets Automatic Renewal Class Action Complaint
October 27, 2015
The complaint for this class action lawsuit alleges that virtual pet website operator Neopets, Inc. engaged in automatic renewals of customer subscription plans without making the clear and conspicuous disclosures about the terms, conditions and price of such renewals required by law.
neopets_complaint.pdfCase Event History
Neopets Automatic Renewal Class Action Complaint
October 27, 2015
The complaint for this class action lawsuit alleges that virtual pet website operator Neopets, Inc. engaged in automatic renewals of customer subscription plans without making the clear and conspicuous disclosures about the terms, conditions and price of such renewals required by law.
neopets_complaint.pdf