March 2019: A federal judge preliminarily approved a settlement agreement that would resolve this case, as well as three related cases, Weber v. Amazon.com, Beals v. Audible, Inc., and Fisse v. Audible, Inc. The settlement agreement provides class members who lost credits with up to four free audiobooks. Audible also agreed to reimburse class members for overdraft fees that were charged because Audible charged their backup card instead of the primary card. In addition, Audible agreed, but only for a period of one year, to make specific changes to its disclosures for rollover limits and cancellation policies. A final fairness hearing is scheduled for July 8, 2019.
March 2017: A false advertising class-action lawsuit was filed against Audible (an online audiobook seller) and its parent company Amazon for allegedly misleadingly marketing Audible membership plans that provide members with prepaid credits to redeem for audiobooks. The complaint alleges that the companies misleadingly market that:
- “[O]ne credit equals one audiobook” when, according to plaintiffs, members may not get one audiobook for each credit because credits may expire before they are redeemed;
- Memberships include one audiobook each month when, according to the complaint, memberships really include a prepaid credit that can expire or be forfeited;
- Credits never expire when, according to the complaint, credits expire for members who reach the limit for their membership plan to make room for new credits and members are charged for new credits;
- Members can cancel any time with “no strings attached” when, according to the complaint, members who cancel plans forfeit all previously purchased credits; and
- Consumers can sign up for a free trial membership and a free audiobook credit when, according to the complaint, consumers who do this end up being enrolled in an automatic renewal policy (the terms of which are not adequately disclosed) and charged without their consent.
(McKee et al v. Audible, Inc. and Amazon.com, Inc., Case No. 17-cv-1941, C. D. CA.)
For more information about other class-action lawsuits filed against Amazon and TINA.org’s coverage of the company, click here.