McAfee will pay potentially $80 million and implement policy changes to settle claims that the security software maker auto-renewed customers’ subscriptions at a higher price than initially indicated and listed discounts with faulty past price references. The plaintiffs in a consolidated proposed class action have asked for preliminary approval of the settlement in which McAfee will pay $11.50 to every member of an “auto-renewal” class and will notify customers at the point of every sale that the service will be auto-renewed at an undiscounted subscription price.
The software maker, as part of the settlement, will also change its policy regarding the past product price it lists as a reference to any discount it’s currently offering. McAfee will now only list a past price it has actually charged customers within the past 45 days, the preliminary approval motion said. The $11.50 amount represents roughly half of what each customer on average was allegedly overcharged for auto-renewal transactions. The overcharges could total more than $80 million, the motion said.
The auto-renewal class would consist of anyone nationwide who paid the automatic renewal of a subscription license from Jan. 10, 2010, to Feb. 10, 2015, whose first auto-renewal change was greater than their initial subscription fee. The reference price class would include anyone nationwide who initially purchased or manually renewed a McAfee subscription from Jan. 10, 2010, to Feb. 10, 2015 at a discounted price.
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