Microsoft Xbox LIVE Gold Subscription Class Action Lawsuit

Irate gamers have filed a class action lawsuit against Microsoft accusing the company of double-billing subscribers to its Xbox LIVE Gold service, an online multiple game system with 23 million subscribers.

Lead plaintiff Ryan Graves claims in the Xbox LIVE Gold class action lawsuit that Microsoft’s prepaid subscriptions are “governed by vague and onerous terms of use” that allow Microsoft to double-bill people who do not renew their subscription before it runs out. When they do renew, Microsoft charges them for the new subscription and to “renew” their old one, and then refuses to refund their money for one of the subscriptions.

Here’s how it works, says the Microsoft class action lawsuit:

“In providing its Xbox LIVE Gold gaming services, defendant requires consumers enter into prepaid subscriptions, governed by vague and onerous terms of use. These agreements purportedly are meant to automatically renew, using the payment method on file — in the form of a credit card, debit card, or prepaid Xbox card. If the payment method on file is no longer valid at the time set for renewal, then defendant, pursuant to its terms of use, terminates the users’ access to the service.  

“Afterwards, if former members wish to again subscribe to Xbox LIVE Gold, then they must purchase an entirely new subscription — a process which requires consumers to provide defendant with a new and valid method of payment. ?    

“Once defendant receives the new payment method, defendant renews the previous, expired subscriptions, without authorization, by billing the new payment method for a renewal of the previous subscription. This is done at the same time the customer is billed for the new, authorized, subscription purchase. This results in consumers, including plaintiff Graves, receiving one subscription for the price of two. Plaintiff Graves has complained to defendant about the unlawful and unauthorized double billing, yet defendant refuses to provide him with a refund.”

Graves claims in the Xbox LIVE class action lawsuit that Microsoft customer support told him Microsoft would not refund his double billing.

“During that same conversation, Microsoft informed Graves that the duplicate charge was not a mistake. The representative further explained that one charge was for the authorized subscription that he manually signed up for on March 4, 2011, and the other was for the automatic renewal of his previous expired subscription. The representative informed Graves that he had two years worth of subscriptions that Microsoft would allow to run consecutively. When Graves responded that he did not want two years of subscription, but rather he wanted a refund for the unauthorized charge, the representative again refused,” says the class action lawsuit.

The Microsoft Xbox LIVE subscription class action lawsuit is brought on behalf of all U.S. residents who purchased an Xbox LIVE Gold subscription with on payment method, subsequently purchased another Xbox LIVE Gold subscription using a different payment method, and were also charged an automatic renewal charge on the new payment method, relating to the initial subscription.

It is seeking restitution and statutory, treble and punitive damages for Breach of Contract, Unjust Enrichment, Conversion and Violation of the Electronic Funds Transfer Act.

A copy of the Microsoft Xbox LIVE Gold Subscription Class Action Lawsuit can be read here.

 

The case is Ryan Graves v. Microsoft Corporation, Case No. 2:11-cv-01259-JCC, United States District Court, Western District of Washington.