Yelp offers a $300 promotional credit for businesses to advertise on Yelp. Once the $300 credit is used, businesses are charged for their ad spend. The company does not send confirmation of sign-up. The Company also does not notify customers once the $300 credit is used, which means they will be charged for further ad spend. As a result, customers are unaware that they get charged for ad spend after the $300 promotion ends, and end up losing hundreds of dollars each as a result.
When customers complain to Yelp regarding these misleading and unauthorized charges, Yelp refuses to refund customers.
Section 17602(b)(1)(A) provides that businesses will be required to send a notice explaining how to cancel 3-21 days before the expiration of a free trial or promotional price that lasts more than 31 days.
Here, Yelp’s $300 promotion lasts for a 6 month period. Yelp does not provide notice explaining how to cancel the ad spend within 3-21 days before the $300 promotional offer ends. Therefore, Yelp violates California’s Automatic Renewal Policy.