The Santa Barbara County District Attorney’s Office filed civil cases last month against the Los Angeles Times and a flower delivery company for their failure to provide required acknowledgments to consumers with automatically renewing subscription services.
Several District Attorney’s Offices around the state ultimately came to agreements with the two defendants, and each company will pay monetary relief.
Santa Barbara County, San Diego County, Santa Clara County, Santa Cruz County, and the City of Santa Monica were all involved in the cases against Los Angeles Times Communications and The Bouqs Company, which provides online flower delivery subscription services. Los Angeles County was part of the prosecution of the case against the Bouqs Company.
In both of these cases, the legal complaints stated that the companies violated the Automatic Purchase Renewal Law, which requires companies to provide consumers with a post-purchase acknowledgement with a “clear and conspicuous disclosure of all material terms of the automatic renewing subscription agreement.”
This acknowledgement must provide information to consumers including: that the subscription or purchase agreement will continue until they cancel, a description of the cancellation policy, the recurring charges that will be charged and that the amount may change, and the length of the automatic renewal term.
According to the complaints, the companies failed to provide such acknowledgements to consumers before automatically renewing and charging their credit cards monthly.
The complaint said that this was misleading and that the companies also committed acts of unfair competition by engaging in unlawful and unfair acts and practices.
The settlements “permanently enjoin and restrain (the companies) from making automatic renewal or continuous service contracts in California without complying with (the Automatic Purchase Renewal Law).”
It also requires Los Angeles Times Communications to pay $100,000 in monetary relief — $10,000 to the Consumer Protection Prosecution Trust Fund, $16,000 to each of the five prosecuting counties and cities for civil penalties, and $2,000 to each of the counties and cities for investigative costs.
“It would be impractical to identify or to provide direct restitution to consumers who may have been harmed by the business conduct challenged in this case,” the complaint said.
This is why Los Angeles Times Communications is required to pay money to the Consumer Protection Prosecution Trust Fund, for the purpose of “enhancing the investigation, prosecution and enforcement of consumer protection actions.”
In its settlement, The Bouqs Company is required to pay $240,000 in monetary relief — $21,000 to the Consumer Protection Prosecution Trust Fund, $35,000 to each of the six counties and cities involved for civil penalties, and $1,500 to each of the six counties and cities for investigative costs.
Both companies also have to pay $453.20 to the Santa Barbara County District Attorney’s Office for their court filing fees.