Boy uses fathers credit card, father sues microsoft for automatic renewal policy

Atlanta (GA) - Francisco Garcia has filed a class action lawsuit against Microsoft because he claims that the Xbox Live renewal procedure is systematic consumer fraud.

Garcia says that in October 2005, his underage son used his debit card to purchase a one-year subscription to Xbox Live Gold for around $50.

One year later, the service was automatically renewed and Garcia’s bank account was charged an additional $50. That caused the account to be overdrawn, forcing a $35 penalty.

Garcia’s lawsuit says that Microsoft "fraudulently induced a contractual relationship for Xbox Live services." He alleges that the software giant is in violation of Georgia law by allowing a minor to sign up for the service and not inform him of the renewal ahead of time.

So far, Microsoft’s involvement in the case has included a request to have the case moved from Georgia State Court to a federal court. It has also filed a motion for dismissal

Microsoft sends confirmation e-mails to the address on file whenever a purchase is made from an Xbox Live user’s account. Additionally, it sends out renewal notices about a month before Xbox Live Gold subscriptions are about to expire or become automatically renewed. The renewal policy is also listed in the terms of conditions for new account purchases.