Code 42 Software’s Automatic Renewal and Continuous Service Offers

October 2017: A federal judge preliminarily approved a settlement agreement that would resolve this case. According to the settlement terms, each class member may receive an equal share of the $400,000 settlement fund after other costs – including attorneys’ fees, a service payment to the named plaintiff, and other administration costs – are paid. It is estimated that each class member will receive a total of $7-$7.50. The company has already revised and enhanced the disclosures and acknowledgments relating to its automatic renewal services. A final fairness hearing is scheduled for February 9, 2018.

November 2015: A class-action lawsuit was filed against Code 42 Software, Inc. (a company that sells subscriptions for “CrashPlan” online computer backup services and other related services) for allegedly failing to adequately disclose the terms of automatic renewal and continuous service offers resulting in consumers being charged without their consent. (The lawsuit was amended in February 2016.) (Kissel et al v. Code 42 Software, Inc., Case No. 15cv1936, C.D. Cal.)

For more information about TINA.org’s coverage of negative option offers, click here.