Microsoft Accused of Double-Billing Customers for Xbox Live - HotHardware
Microsoft Accused of Double-Billing Customers for Xbox Live

Microsoft Accused of Double-Billing Customers for Xbox Live

An Xbox Live customer has filed a class-action lawsuit against Microsoft, alleging that the company has been renewing subscriptions and double-billing customers without their consent.

The suit was filed by Ryan Graves, an Indiana resident that claims Microsoft's pre-paid subscriptions are "governed by vague and onerous terms of use." Graves claims that he let his automatically-renewing Xbox Live subscription expire by declining to update his credit card information, and that when he renewed the account several months later with a new card, he was charged for both the new subscription and the previously expired automatic subscription.

Microsoft told Graves that the issue was not a mistake, according to the court filing, and said that he would received two years of Xbox Live service because the charges covered both the pending automatic renewal and the manual renewal.

Graves, meanwhile, says that he refused to accept Microsoft's response, and says that he did not order a two-year subscription. 

With the suit, Graves seeks restitution, statutory, treble and punitive damages for breach of contract, unjust enrichment, conversion and violation of the Electronic Funds Transfer Act, and wants Microsoft to "reverse all unlawful, unfair, or otherwise improper charges, and to cease and desist from engaging in further unlawful conduct in the future."

It should be noted that for those looking to turn off automatic renewal on an Xbox Live account, customers can call Xbox Live customer support and have them remove automatic renewal from the account.
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They do they have done it to me before

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Microsoft USED to have a page on their support site that allowed XBL customers to turn automatic renewal off. When they redesigned the site they pulled an eBay and removed it, and now customers have to call in to have it changed. Slimy, but not illegal. The redesign is recent, so when this happened he probably still could have turned off renewal the easy way.

I suspect he'll lose this one. Instead of just canceling his Gold account or properly turning off renewal, he left a pending charge sitting on the account, which simply went through when he added a valid payment source. He didn't do things properly so now he'll be stuck eating the charge AND the legal fees.

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