Cashback Service Smarty Charges Consumers for Unwanted Monthly Subscriptions, Class Action Alleges

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Smarty faces a proposed class action wherein a consumer claims the coupon and cashback subscription service continued to charge her a monthly fee after she canceled her membership.

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The 16-page lawsuit alleges the defendant, whose web-browser extension identifies coupons for consumers to use when shopping online, has run afoul of California’s Automatic Renewal Law (ARL), which requires companies that offer automatically renewing subscriptions to present the service’s cancellation terms, among other things, in a “clear and conspicuous manner” before a consumer signs up.

The suit contends that Smarty, contrary to the ARL’s requirements, which mandate that such terms must be displayed “in larger type than the surrounding text” and “in a manner that clearly calls attention to the language,” presents its cancellation policy “in small font, such that [it is] not clear and conspicuous.”

The plaintiff, a Massachusetts resident, says in September 2022 she signed up for a free 14-day trial with SmartyPlus, a monthly subscription service that offers consumers extra shopping and shipping perks. The woman claims that Smarty charged her $3 on the day of her enrollment, despite the representation that the trial membership was free.

According to the plaintiff, four days into her 14-day trial, she canceled her SmartyPlus subscription and received confirmation from the company of the termination of her membership. However, Smarty continued to charge the woman a $19 subscription fee for the next two months of service, even though she had canceled her membership, the case alleges.

“In total, [the plaintiff] paid $41 for 4 days worth [sic] of a subscription service, where per the representations of Smarty, she should have paid nothing,” the complaint argues.

The lawsuit looks to represent any residents of California or Massachusetts who purchased a SmartyPlus subscription within the applicable statute of limitations period.

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