NordVPN Lawsuit Filed Over Allegedly Illegal Automatic Subscription Renewal Practices

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A proposed class action lawsuit accuses NordVPN of tricking consumers into paying for unwanted, pricey subscriptions to its internet security services by way of illegal automatic renewal tactics. 

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The 49-page NordVPN lawsuit claims the company intentionally misleads consumers into thinking they can subscribe to Nord Security’s virtual private network (VPN) and other services for “a discrete period of time.” However, NordVPN effectively hides from consumers the fact that their subscription will automatically renew, with the company’s subscription disclosures falling far short of what’s required by law, the case alleges.
 
Further, the suit accuses NordVPN of intentionally making its auto-renewing subscriptions difficult to cancel, essentially trapping consumers into unintended purchases of the company’s online privacy and protection products and services.
 
In particular, NordVPN offers its products with a “negative option” feature, which the Consumer Financial Protection Bureau (CFPB) outlines as “a term or condition under which a seller may interpret a consumer’s silence, failure to take an affirmative action to reject a product or service, or failure to cancel an agreement as acceptance or continued acceptance of the offer,” the complaint shares. This is especially harmful to consumers when a seller misleads consumers as to a program’s terms and conditions, fails to obtain their informed consent or makes a program difficult to cancel, the case relays.
 
Related Reading: NordVPN Lawsuit Investigation: Did Your Subscription Automatically Renew?
 
According to the class action suit, Nord Security deceives consumers “in at least six ways.”
 
First, the company fails to clearly and conspicuously present the terms of the automatic renewal offer, including a description of the cancellation policy, during the enrollment process, the lawsuit says. Second, Nord Security’s receipt and acknowledgment emails sent to consumers after they enroll in a subscription do not include the automatic renewal offer terms, cancellation policy, or details about how to cancel in a manner capable of being retained by the consumer, the complaint contends.
 
Third, Nord Security deceives consumers by making it “exceedingly difficult” to cancel a subscription, with the company offering no help to subscribers amid an “entirely unorthodox” cancellation process, the lawsuit continues.
Nord Security also fails to provide sufficient notice under Colorado law that a consumer’s subscription will automatically renew at least 25 days, but no more than 40 days, before the subscription renews, the case adds.
 
From there, the suit alleges Nord Security utilizes a “highly unconventional” charging practice whereby the company will charge a consumer for their subscription 14 days before their subscription period even ends, rather than automatically renewing it at the beginning of a new subscription period.
 
Lastly, Nord Security does not clearly and conspicuously disclose material changes to its automatic renewal terms, and fails to provide any information whatsoever regarding how to cancel a subscription in its communications regarding changes to the terms, the filing claims.
 
“Defendants are well aware that their scheme is tricking customers, as complaints about Nord Security are legion, with hundreds of consumers complaining on sites like Trustpilot, SiteJabber, and Reddit or directly to Nord Security,” the complaint shares, adding that Nord Security experiences a high rate of chargebacks from consumers who’ve turned to their credit card companies to dispute unwanted Nord transactions.
 
Despite these “clear messages” from consumers, “Nord Security continues to subject the consuming public to its unlawful subscription scheme and Defendants continue to reap significant monetary benefits from their unlawful conduct,” the class action says.
 
The NordVPN lawsuit looks to cover all consumers in Colorado who were automatically enrolled into and charged for at least one month of Nord Security membership at any time from within the applicable statute of limitations period.
 
Head to ClassAction.org’s settlements page for a complete list of data breach settlements.