McAfee’s Automatic Renewals and Reference Pricing

In October 2016, plaintiffs who filed false advertising-class action lawsuits against McAfee in 2014 and 2015 for allegedly charging auto-renewal prices that were higher than what was advertised jointly moved for final approval of a settlement agreement that will, if approved, resolve both lawsuits.

According to the proposed settlement terms, class members will receive an $11.50 award (either in cash or in a McAfee value certificate, depending on whether the class member filed a claim form) . In addition, McAfee agreed to make changes – including adding disclosures regarding its automatic renewals and using reference prices that meet certain requirements – to its marketing for a period of two years. A final fairness hearing is scheduled for January 26, 2017.
(Williamson et al v. McAfee, Inc., Case No. 14-cv-158, N. D. CA. and Kirby et al v. McAfee, Inc., Case No. 14-cv-2475, N. D. CA.)

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