Class Action Alleges Trade Coffee Subscriptions Violate California’s Automatic Renewal Law

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A proposed class action claims Trade has failed to make certain disclosures required under California law before automatically renewing consumers' coffee delivery subscriptions.

The 24-page lawsuit alleges that Seed Leaf, Inc., which does business as Trade, has violated several provisions of California's Automatic Renewal Law (ARL), a statute that prohibits companies from continuously charging consumers for ongoing deliveries without first obtaining their explicit consent or making certain disclosures regarding the terms of the recurring service.

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According to the case, Trade has unlawfully charged consumers for automatically renewing coffee subscriptions sold on its website, DrinkTrade.com, because the company does not disclose its automatic renewal offer in a "clear and conspicuous" manner and therefore fails to receive consumers' affirmative consent to continue the service. 

The filing argues that before consumers make a purchase, Trade's subscription plan offer and checkout pages do not properly disclose that the service will continue until canceled. Additionally, the company fails to clearly describe the offer's cancellation policy, length of the automatic renewal term, and amount of recurring charges that customers will be charged, the suit alleges.

“Indeed, the offer and terms appear nowhere on the Website’s offer and checkout pages, except for in the standard footer at the very bottom of the page,” the case states.

Per the filing, consumers are not required "to view, or even click on, the Terms and Conditions, before proceeding with a purchase."

The complaint contends that after a consumer makes a purchase, Trade fails to provide "an acknowledgment that includes the automatic renewal or continuous service offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer," as required under the ARL.

Further, the ARL states that a business must provide consumers with an easy method of termination through either a "direct link or button" or an "immediately accessible termination email" that does not include additional information, the filing relays. Nonetheless, Trade's cancelation process is "unclear and difficult," as consumers must "wade through a series of steps," which include requests to renew their subscription, the suit argues.

The lawsuit looks to cover anyone in California who purchased any product or service in response to an automatic renewal offer from Seed Leaf, Inc. via DrinkTrade.com during the applicable statute of limitations period.

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