Q: How do I get out of a lock in agreement that was hidden in the terms and conditions of an online subscription?
On September 29: I joined I started a membership for professional development online. I thought I was signing up for a monthly subscription service. There was no other contract or terms. It was just the typical online subscription so I didn't think anything of it. They said I could cancel as long as I gave 15 days notice before the billing date.
On October 5 (7 days later counting the weekend): I requested to cancel my membership because I discovered that the group had public complaints of practices that go against my values, being a scam, and did not offer the support services they advertised.
On October 5: I was told I couldn’t cancel the membership because it was a 12 month commitment. The woman sent me an invoice with it written under the membership name and a link to see the terms and conditions again. I asked if I could pay an early cancellation fee or penalty to terminate the agreement, but she said they didn't have one and wouldn't cancel the membership
A:
Great work in what sounds like sniffing out a scam before you got too far down the road with them. Unfortunately these kind of personal coaching or development scam programs are becoming all too common. There may be options available to you, but an attorney assisting you will need more facts including the actual purported agreement. You should reach out to an attorney that specializes in consumer protection as soon as practicable.
Best regards,
Dan LeBel
A: Under California law, online businesses are required to clearly and conspicuously disclose the terms of any automatic renewal offer or continuous service offer, including any material terms. If you were not provided a clear and conspicuous disclosure of the 12-month commitment and the terms weren't readily accessible, the business may be in violation of the California Automatic Renewal Law (ARL). Given the circumstances, you may want to notify the company in writing of the potential violation and your intent to dispute the charges based on non-compliance with California law. If they do not remedy the situation, you can consider contacting your credit card provider to dispute the charges or seeking advice from an attorney familiar with consumer protection laws to evaluate your options. Remember, communication is essential, and putting your concerns in writing creates a record that may be useful in the future.
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