Literati Book Club Lawsuit

Literati Book Subscription Lawsuit

Literati Book Club Lawsuit

Literati is a children’s book club and monthly subscription service. The company sends monthly boxes to subscribers, with books organized by age and reading level. When someone wishes to unsubscribe from the service, however, things can become difficult. An investigation by the Los Angeles false advertising lawyers at Tauler Smith LLP has uncovered that many consumers who purchase subscriptions to the Literati Book Club find themselves stuck in a service where there is no manner to unsubscribe after they have signed up through the Literati website. This is a violation of California law, and it may entitle certain subscribers to remuneration.

If you have encountered a problem unsubscribing from Literati, please contact us immediately, as you may be eligible to file a civil lawsuit and receive financial compensation.

Literati Book Club Violates California Automatic Renewal Law

California’s Automatic Renewal Law (ARL), which is codified in Cal. Bus. & Prof. Code §§ 17600, requires businesses to clearly and conspicuously explain to the consumer any automatic renewal offer terms in the contract. More specifically, the ARL requires the automatic renewal offer to have a “cost-effective, timely, and easy-to-use mechanism for cancellation.”

Our legal team believes that Literati violates California law because, among other things:

  1. Literati does not provide subscribers to its book club with an explanation of its cancellation policy before a subscription to the Literati Book Club is purchased.
  2. Literati does not disclose when or how much subscribers will be charged.
  3. Literati does not provide a clear or easy method for subscribers to cancel online.

Literati Book Club May Violate the California Consumer Privacy Act

Tauler Smith LLP is also investigating Literati’s business practice of collecting children’s data in order to “track, profile, and target children with targeted advertising.” Buried in its terms of use, Literati admits that it shares the personal data of subscribers’ children with third parties. This is a significant admission because new privacy laws protect you and your children from companies like Literati.

For example, under the California Consumer Privacy Act (CCPA), online businesses like Literati that track children must ask consumers of their services if they are 16 years of age or older. If Literati does not get valid consent, Literati is engaged in illegal activity. Beyond any possible criminal implications, Literati could also be civilly liable for violating your privacy rights when it harvests the personal information of your children.

Contact the California False Advertising Lawyers at Tauler Smith LLP

The California false advertising attorneys at Tauler Smith LLP are prepared to help you get compensated if you were a victim of false advertising, or if your privacy rights were violated in any way, by the Literati Book Club. Our experienced attorneys represent clients in courts throughout California, and we will provide you with the strongest possible legal representation in your claim against Literati. Call us today at 310-590-3927 or fill out our online contact form.

Automatic Subscription Renewal Law

The Legality of Automatically Renewing Subscriptions

Automatic Subscription Renewal Law

You know the feeling. You sign up for a one-year subscription—whether it’s for TV and internet services, food delivery, clothing, a dating app, or countless other products and services—intending to pay only for that year. Or you sign up for a “free trial,” thinking you will only be charged if you actually buy the service. But then, without your knowledge and consent, you are charged for an additional subscription period, or for a product or service you never intended to buy. Unfortunately, this happens to consumers every day, and companies often rely on these deceptive practices to get your business and your money.

The good news is that many states, including California, have laws like the ARL to ensure that consumers enter subscription programs with full knowledge and affirmative consent. To learn more, keep reading this blog.

What Is the Automatic Renewal Law?

In 2009, the California Legislature passed the Automatic Renewal Law, Business and Profession Code Section 17600 (the “ARL”), to “end the practice of ongoing charging of consumer credit or debit cards . . . without the consumers’ explicit consent for ongoing shipments of a product or ongoing deliveries of service.”

You may be entitled to relief under the ARL if any of the following apply:

  1. You were charged for a subscription that automatically renewed without your knowledge and consent.
  2. You signed up for a “free trial,” and without being able to cancel the service, were charged anyway.
  3. You signed up for a “free trial,” and there was no “clear and conspicuous explanation” of the offer’s pricing or change in pricing upon the trial’s end.
  4. You signed up for the subscription online, but there is no online cancellation option.
  5. For non-online subscriptions, there are none of the following cancellation methods: (a) a toll-free telephone number; (b) an email address; (c) a postal address, if the seller directly bills the consumer; or (d) another “cost-effective, timely, and easy-to-use mechanism.”

What Are the Disclosure Requirements Under the ARL?

Under the ARL, any business initiating an automatic renewal or continuous service offer to a California consumer must:

  • Disclose the terms of the offer.
  • Obtain the consumer’s affirmative consent.
  • Provide the consumer an acknowledgement of the order.
  • Provide simple cancellation procedures, along with other miscellaneous requirements.

Whether they are offered orally or in writing, the offer terms must be disclosed in temporal or visual proximity to “the request for consent to the offer.” Id. § 17602(a)(1).

The disclosures must also be “clear and conspicuous.” Id. A visual disclosure is clear and conspicuous if it is “in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size . . . in a manner that clearly calls attention to the language.” Id. § 17601(c). An audio disclosure is clear and conspicuous if it is “in a volume and cadence sufficient to be readily audible and understandable.” Id. Three other important aspects of the ARL are: A company must allow a consumer to cancel an automatic renewal or continuous service offer exclusively online if the consumer accepted the offer online ( § 17602(c)); and An automatic renewal or continuous service offer that includes a free gift or trial must have a “clear and conspicuous explanation” of the offer’s pricing or change in pricing upon the trial’s end ( § 17602(a)(1)); and A “free gift or trial” triggers a disclosure in the acknowledgement about how to cancel–and an allowance for cancellation–before the consumer pays for the good or service ( § 17602(a)(3)).

Can You Sue If Your Subscription Was Automatically Renewed Without Your Consent?

Although there is no private right of action under the ARL, a private plaintiff may bring an action under California’s Unfair Competition Law, Business & Professions Code §§ 17200 et seq. (“UCL”), for restitution and injunctive relief, as long as the plaintiff has suffered injury in fact and lost money or property. See Lopez v. Stages of Beauty, LLC, 307 F. Supp. 3d 1058, 1070 (S.D. Cal. 2018).

Contact the California False Advertising Lawyers at Tauler Smith LLC Today

Victims of suspicious or unauthorized charges on their credit cards should report illegal subscription renewals to the California false advertising lawyers at Tauler Smith LLC. Our experienced attorneys can investigate the subscriptions and help you obtain compensation. Call 310-590-5927 or fill out the online contact form to schedule a consultation.