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Microsoft sued over Xbox Live billing

Customer unhappy with double billing, files against Microsoft's "vague and onerous terms of use"

An Indiana man has filed a class action lawsuit against Microsoft, alledging that the company charged him for a two year subscription without his consent.

Ryan Graves, the plaintiff, allowed his Xbox Live subscription to lapse, leaving out of date credit card information on his account. When he updated those details a short time later he was billed twice, both for the expired and new subscription, giving him two tears of service.

Graves says this two year subscription was against his wishes, and Microsoft has refused to refund the charge.

He is seeking damages on the following charges. "Plaintiff asserts claims for breach of contract, unjust enrichment, conversion, and violation of the Electronic Funds Transfer Act (EFTA), 15 U.S.C. § 1693, et seq., on behalf of himself and similarly situated Xbox LIVE Gold members."

Graves also claims that the terms and conditions of Xbox Live are "vague and onerous" and unlawful.

Xbox Live has around 23 million subscribers.

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Latest comments (13)

Andrew Goodchild Studying development, Train2Game10 years ago
I have found it annoying that renewal was automatic before, I found it out when mine expired when I was without internet for 6 months. This time round after getting a message that it would automatically renew, i got a message on the dash asking me if I wanted it to. Hopefully this is the start of a policy change.
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Terence Gage Freelance writer 10 years ago
Surely there's something in their T&Cs which said the renewal would be automatic? Not that I think this is right of them, but he probably just ticked 'I have read the Terms and Conditions' without actually reading them, like most of us do I'm sure.

The first thing I did when I got a 3 month PS Plus subscription was go into My Account disable the automatic renewal option. It did at least make it clear that I could do this when I signed up.
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Greg Knight Freelance Developer 10 years ago
After the Sony hacking debacle I changed all my credit cards. It was amazing how many companies suddenly started sending me emails saying they couldn't renew as my credit card details were no longer valid for services that must have been silently renewed for a number of years without me even noticing.
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Show all comments (13)
gi biz ;, 10 years ago
So MS is making recurring bills like porn sites? XD I hope this guy learned the lesson and that he'll think twice before giving his money to MS the next time.
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Stuart Hunt Senior Programmer, Slightly Mad Studios10 years ago
It's not the auto-renew he's suing over - although I think it's awful that you have to call someone to switch off the automatic renewal, on by default. They did something similar to me a few years back. My credit card had expired, but I'd no intention of renewing LIve via Microsoft directly as you can get it cheaper by buying their card from an online retailer. The steps made it awkward for me to add the new code, and forced me to put in new card details before I could continue the Live subscription. Then as soon as I did, they applied my code AND charged my new card, so I had 2 years subscription. That's just wrong and sneaky, the term should finish as soon as they can't get payment from you.
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Chris Nash QA Engineer 10 years ago
You used to be able to turn off auto-renewal on, but that option was removed a couple of years ago, and now you have to call MS - who will, naturally, persuade you to keep it turned on by hard-selling you "unbeatable" special offers. In that respect it's no different from trying to leave a mobile phone company - you get forwarded to "Retentions", the department whose job it is to convince you to stay.
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I've had a similar experience with LIVE. I decided I didn't want the gold service anymore, because I rarely played online and was between jobs, so I needed to save money. At the same time my credit card expired, so (after hunting their website & following links to "Cancel your subscription" that don't lead anywhere) I decided that I'd simply not enter my new card details.

After a few months MS were threatening to permanently block my profile, because they had "loaned" me live subscription access for the time that I didn't want it, and were demanding back-payment for the previous months.
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Tom Plunket10 years ago
Barrie, on my account it shows that automatic renewal is on but there is no way to turn it off. Clicking edit details (which I have to do again on a subsequent screen) leaves me on a screen with no automatic renewal information.
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Bnvmgvhvm Kjbkjhb10 years ago
Quick correction:

"giving him two tears of service."
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C Fletcher10 years ago
I think it's valid. It would change MS policies most likely. Why does this document have so many grammatical errors?
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James Prendergast Process Specialist 10 years ago

I used to work in retentions for a credit card company. Not only did the company require us to keep customers, they also wanted us to persuade them to get more into debt.. Such a horrible job doing something that is counter-customer service....
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Gregory Keenan10 years ago
able to remove auto renew on the website with no problems. slightly suspect renewal date as I was starting basic training a year ago so had no access to the internet.
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Curt Sampson Sofware Developer 10 years ago
Unlike long distance phone service or whatever, this is not a fungible product. So why do they think they have to resort to tactics like this to keep their customers? You'd think that, especially given he's a subscriber, they'd just give him a refund and wait for him to renew next year.
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