The online wine seller Naked Wines has agreed to settle a consumer protection lawsuit brought by multiple district attorneys, according to Napa County District Attorney Allison Haley.
Haley said in a statement that Nakedwines.com, Inc. had settled a complaint alleging the company had not followed California's Automatic Renewal Law, which mandates certain notices for customers who enroll in programs with recurring payments.
The complaint was brought by the district attorneys of Napa, Sonoma and three other counties, and was filed in San Diego County Superior Court.
Naked Wines was accused of violating the necessary notices for customers who enrolled in either of two programs with recurring billing: the "Wine Angel" program, which costs $40 a month, and the "Wine Genie" program, which offers recurring deliveries of amounts set by the customer.
Customers who signed up for the programs since April, 2017 can receive a refund by making a written request to Naked Wines.
The complaint alleged that both programs did not include pre-purchase disclosures about the recurring charges, as well as failed to adequately notify consumers after they enrolled, and failed to provide a simple online way to cancel the payments.
"My office is committed to enforcing consumer protection laws," District Attorney Haley said in a statement. "The Automatic Renewal Law exists to ensure that consumers understand that they may be agreeing to months or years of recurring charges."
Naked Wines agreed to pay $650,000 in civil and investigative costs.
Haley said the company was cooperative with the investigation and had implemented changes to its disclosures and sign-up process.