Peacock has agreed to pay $3.6 million to settle a lawsuit by the County of Los Angeles over the streamer’s auto-renewal policy.
Under an agreement awaiting approval by a Superior Court judge, Peacock will pay $1.5 million to the county’s Department of Consumer and Business Affairs for consumer protection investigation and enforcement activities, $2 million in civil penalties that must be used for enforcement of consumer protection laws by the county and $100,000 in investigative costs.
The lawsuit was filed by County Counsel Dawyn Harrison on behalf of the State of California in response to what he said were complaints from consumers across the county and the state. The streamer, which counts more than 2.5 million California subscribers, is not admitting any liability.
As part of the settlement deal, Peacock must present automatic-subscription-renewal terms clearly and conspicuously, obtain the consumer’s affirmative consent to a subscription agreement, provide an acknowledgment that includes the automatic renewal terms and a description of the cancellation policy and provide an easy cancellation method allowing for immediate termination without further steps that obstruct or delay the end of service.
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Back in October, the Federal Trade Commission announced a final “click-to-cancel” rule requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. The 230-page rule applies to so-called “negative option” programs in any media and runs the gamut from streamers to cable TV subscriptions to home shopping networks and gym memberships.
“This outcome is a significant win for the public and a reminder that no business, regardless of size or influence, is above consumer protection laws,” said Rafael Carbajal, director of the county’s Department of Consumer and Business Affairs. “This settlement strengthens our ability to hold bad actors accountable, expand our investigative reach, and safeguard the communities we serve from future harm.”