Zoominfo is a B2B subscription based market intelligence platform that helps sales and marketing teams find information on potential customers. Zoominfo sells access to their market intelligence platform for upwards of $15,000 per customer. As of December 31, 2021, Zoominfo had over 25,000 customers subscribed.
Zoominfo customers complain of the company’s hidden autorenewal terms for their yearly contracts. The auto renewal terms, which is buried in Section 3 of the contract, states that a subscriber must cancel 60 days before the renewal date and if they don’t, their subscription will automatically renew:
“3.2 Automatic Extension of the Term. On the date that is 60 days prior to the last day of the Term (the “Extension Date”), the Term will automatically extend for a period equal to the length of the Initial Term or one year, whichever is longer, unless either party, on or before the Extension Date, notifies the other in writing that the Term shall not so extend.”
According to customers, this is never mentioned during the sales calls. Zoominfo’s sales representatives also do not reach out before the extension date. Instead they reach out after the deadline to cancel has passed:
“Very deceptive sales tactics. Auto-renew is one of them with no room to cancel even 45 days prior to renewal. They reach out to schedule a renewal talk and schedule it for after the auto renew date.”
Zoominfo’s terms contain a mandatory arbitration provision:
“8.2 Mandatory Arbitration. Except for Litigation Claims (defined below), any dispute, claim, or controversy arising out of or relating to this Agreement, including, without limitation (1) claims relating to the breach, termination, enforcement, interpretation or validity thereof, (2) claims alleging tortious conduct (including negligence) in connection with the negotiation, execution, or performance thereof, or (3) the determination of the scope or applicability of this agreement to arbitrate, shall be settled by arbitration administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures and in accordance with the Expedited Procedures in those Rules or pursuant to JAMS’ Streamlined Arbitration Rules and Procedures.”
Customers may have a mass arbitration claim against Zoominfo for its misleading auto renewal terms. Although California’s auto renewal law only protects consumers, not businesses, Zoominfo customers may have a claim under False Advertising Act, Business Code 17500, or other statutes that prohibit false or misleading statements about a product or service.