Spotify USA, Inc.'s ("Spotify") efforts to have
class action claims regarding its automatic renewal practices
dismissed were recently denied by a federal court in California.
The decision represents another data point in the recent
upward trend of class action lawsuits involving claimed violations
of California's Automatic Renewal Law ("ARL").
How do Spotify's services allegedly violate the automatic
renewal law?
Spotify's music streaming service provides both free and
paid subscription models, each incorporating automatic renewal
aspects. The paid service is offered on a monthly
subscription basis, which automatically renews each month until
subscribers cancel. The free service encourages new members
to subscribe by offering a 30-day trial, after which time the
subscriber is automatically charged the full amount for the next
month, and each month thereafter, until s/he cancels the
subscription. To register for the free trial plan, Spotify
requires payment
