Class Action Claims Microsoft Double-Bills Xbox Subscribers

Microsoft double-bills subscribers to its Xbox Live Gold service, an online multiplayer game system with 23 million subscribers, an irate customer says in a federal class action.

In the suit filed in U.S. District Court in Seattle, Ryan Graves of Bloomington, Ind., says he bought his first Xbox 360 video game console in December 2005. He later signed up for Xbox LIVE Gold, a prepaid subscription service which allows its 23 million members to play against each.

Graves used his debit card in January 2010 to sign up for the $49.99 annual subscription and said he did not recall authorizing an automatic renewal of his subscription.

In June 2010, Graves canceled his debit card and in January 2011, his prepaid Xbox LIVE Gold subscription ended and Microsoft terminated his access.

Shortly thereafter, Graves signed up for a new one-month free Xbox LIVE Gold subscription and, when that ended on March 4, 2011, he purchased a new annual subscription for $64.19 and gave Microsoft his new debit card number.

Upon reviewing his checking account statement in April, Graves found that Microsoft had billed him for two separate $64.19 transactions on March 4.

But Graves had agreed to only one of those charges – the new subscription. Microsoft debited his card not only for the new subscription but also for the one that had ended in January 2011.

Graves called Microsoft customer support and was told that the company would investigate. After a number of conversations, a Microsoft representative informed him that the company considered the matter "resolved" and would give him two years of Xbox service.

Graves objected, saying he did not want and did not order a two-year subscription.

The suit charges that Microsoft routinely renews Xbox subscriptions without permission and charges it with breach of contract, unjust enrichment and violations of the Electronic Funds Transfer Act.