![]() Gavin Newsom a year ago, it added requirements for renewal notices and cancellations. The law took effect in 2010, but it got a significant upgrade in July when Assembly Bill 390 kicked in. “The Automatic Renewal Law exists to ensure that consumers understand that they may be agreeing to months or years of recurring charges,” Haley said in the announcement. Napa County District Attorney Allison Haley said the purpose of the law is to protect consumers. Of those, more than 300,000 are in the U.S., according to Huffsmith. The company said it had more than 964,000 “angel” members at the end of its last fiscal year, which ended March 28. Huffsmith said the company settled without admission of liability and that none of its customers were involved in the district attorneys’ inquiry. “We issue refunds at a customer’s request, at any time and for any reason.” ![]() “Naked Wines’ Angel program is one of the most customer-friendly recurring payment programs on the market,” General Counsel Anne Huffsmith told the North Bay Business Journal in an email Friday. The other program is Wine Genie, which would charge participants for automatic monthly shipments of wine selected based on consumer preferences. Customers could use the accrued money in their “Naked piggy bank” to purchase the wine made from those projects. One of the programs in question is Wine Angel, which charges participants $40 a month to be part of an angel-funding-like effort to back wine-making projects. Specifically Naked Wines failed to provide the required disclosures about recurring charges before taking payment information, provided “insufficient” information about future payments and a “simple” way for customers to cancel and stop payments, according to a news release. It claimed two of the company’s programs violated newly added provisions of the Automatic Renewal Act. The move comes as the company has also announced job cuts.ĭistrict attorney’s offices in Napa, Sonoma, Alameda, San Diego and Shasta counties filed the complaint in San Diego County Superior Court. arm of Naked Wines will pay $650,000 in civil penalties and investigative costs plus refund any California customers of two company programs since April 2017 who request it. In the judgment announced Thursday, the U.S. Inc., a Napa-based subsidiary of a United Kingdom-based online wine retailer, has reached a settlement with several California county prosecutors who said the company failed to follow a newly tightened state law that protects consumers from unknowingly getting charged for subscriptions.
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