Symantec hit with class-action lawsuit over auto-renewals

The lawsuit comes seven months after the New York Attorney General's office fined Symantec $375,000 for the practice and ordered it to give notice before renewing any subscription.

According to the lawsuit filed Jan. 19 in a New York County court, Kenneth Elan of Port Washington, N.Y., purchased a copy of Norton Antivirus in 2007. Early in November 2009, Symantec told him that it had automatically renewed his license to the software for one year, and charged his credit card $76.03. Elan said he had not been notified prior to the charge hitting his card.

Symantec's security software typically comes with a one-year license, which includes a subscription to new malware signature updates. When that initial signature subscription expires, consumers must renew to continue to receive anti-malware updates.

Many antivirus vendors enroll customers in automatic renewal programs when they purchase or activate the software, claiming that it's the only way to guarantee that users stay protected against new threats. Symantec started doing so in 2005, while rival McAfee began four years earlier.

But last June, New York Attorney General Andrew Cuomo announced that his office had reached a settlement with Symantec and McAfee over consumer charges that the companies didn't get users' approval to automatically bill them, and had made it difficult for customers to opt out or obtain refunds. Symantec and McAfee paid $375,000 each in penalties, and said they would clarify subscription renewal costs, and refund fees to consumers who asked for them within 60 days of being charged.