California Automatic Renewal Investigation: Walmart Beauty Box
Last Updated on March 7, 2023
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter.
Check back for any potential updates. The information on this page is for reference only.
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At A Glance
- This Alert Affects:
- Any California resident who signed up for Walmart’s beauty box and was enrolled into an automatically renewing subscription for the product.
- What’s Going On?
- Attorneys working with ClassAction.org are investigating whether Walmart violated California Auto Renewal Law with regard to its beauty box subscriptions. If so, they may be able to get a class action lawsuit started.
- Why California?
- California has specific state law requirements for businesses who want to automatically charge their customers. This includes providing clear disclosure of any automatic renewal terms and providing information on how to cancel.
- How Can a Class Action Help?
- A class action could help customers get their money back and require Walmart to change the way it signs up beauty box customers.
Attorneys working with ClassAction.org would like to speak to California residents who signed up for Walmart’s beauty box.
They’re investigating whether Walmart complied with California’s Auto Renewal Law when enrolling customers in its beauty box subscriptions. If not, consumers may be able to file a class action lawsuit to get their money back and change the way Walmart informs customers of its automatically renewing beauty box subscriptions.
California Auto Renewal Law: What Are the Requirements?
Under California’s Auto Renewal Law, a company must:
- Obtain “affirmative consent” to its automatic renewal terms before charging a consumer’s credit card
- Present its automatic renewal offer terms in “a clear and conspicuous manner” (i.e., different font, color, size, etc.) and near its request for consent to the terms
- Provide the consumer with a retainable copy of its automatic renewal terms and cancellation policy, including information on how to cancel a subscription
It is believed that Walmart failed to comply with each of these requirements when selling its beauty boxes.
Specifically, attorneys working with ClassAction.org suspect that neither the automatic renewal terms nor a request for consent were present at the time of purchase.
Further, while Walmart sends two emails to consumers who sign up for its beauty box, neither mentions auto-renewal of the subscription or how to cancel.
How Could a Class Action Help?
A class action lawsuit, if filed and successful, could provide California Walmart customers with money back for their purchases. It could also force Walmart to modify its website to ensure its beauty box subscription complies with California law.
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