· Stop using pre-checked boxes to obtain consent from consumers to purchase products or services;
SEATTLE — Today, McKenna announced a settlement with RealNetworks that will end the questionable practices and provide restitution for consumers throughout the country. Among numerous requirements, RealNetworks agrees to comply with the federal Restore Online Shoppers Confidence Act, which requires a customer's express consent before he or she can be charged for a free trial that converts into a paid subscription. While McKenna's office brought a previous case regarding unauthorized charges by online merchant Intelius, this is the first time a defendant in a state action was required to comply with the new federal law.
· Stop offering free-to-pay conversions that do not clearly disclose all the terms of the offer, including subscriptions that are automatically charged on customers' credit cards;
· Provide an online method of cancelation so that consumers may easily cancel their subscriptions;
· Send e-mail or other reminders that consumers are enrolled in a free-to-pay conversion, along with instructions for how to cancel the subscription;
· Cancel subscriptions within two days of a consumer's request to do so; and,
· Inform consumers who have called to cancel a subscription of additional subscriptions on their account.
Consumers who were unknowingly signed up using pre-checked boxes between January 2007 and December 2009 will receive a postcard indicating that they are eligible for a refund. Additionally, consumers may visit realnetworksrestitution.com or call or call 866-229-7802 to submit a claim. RealNetworks also agrees to pay $400,000 in attorney's fees.
More information:
· Complaint (PDF)
· Consent decree (PDF)
Screenshots:
· Real1
· Real2
· Real3
· Real4
