Streamlabs Pro Auto Renewal Settlement: $4.4M

• Consumers who added a GIF or effect to their donation and were then enrolled in Streamlabs Pro automatic renewal without explicit consent.
  
  
• Consumers who were subsequently billed a monthly fee for the subscription between March 3, 2018, and May 17, 2022.

To claim compensation, class members must provide either of the following:

• Streamlabs username
• Email address used to create the Streamlabs account

Streamlabs has agreed to pay $4.4 million to settle claims that it enrolled consumers in a recurring Pro subscription without their knowledge or consent.

The class action lawsuit alleges that Streamlabs misled consumers by failing to properly disclose that adding a GIF or effect to a donation would automatically enroll them in a paid Streamlabs Pro subscription. Plaintiffs claim that after making a one-time donation, users were unexpectedly charged a $5.99 monthly fee for the subscription. Many users allegedly only became aware of the subscription after noticing multiple unexplained charges on their payment statements.

The lawsuit contends that this subscription model violated consumer protection laws, particularly those governing automatic renewal disclosures and unauthorized charges. Plaintiffs argue that Streamlabs failed to provide clear, upfront notice that users were being enrolled in a paid subscription and did not obtain proper authorization before billing them on a recurring basis.

Streamlabs, a platform offering tools for live streaming, overlays, and viewer donations, has denied any wrongdoing but agreed to settle the case to resolve the claims.

Under the terms of the settlement, consumers who were unknowingly charged for a Streamlabs Pro subscription may receive a cash payment. Payments will be calculated based on the number of monthly subscription charges a class member incurred during the eligibility period. Individuals who paid for multiple months will receive a larger share of the total settlement amount.

The exact amount each class member will receive has not been determined, as it depends on the total number of claims submitted.

In addition to financial compensation, Streamlabs has agreed to modify its subscription disclosure process to comply with California’s Consumers Legal Remedies Act. The company has committed to:

• Clearly disclosing subscription terms before users sign up.
• Ensuring consumers understand they are enrolling in an automatic renewal program.
• Improving user experience so customers can more easily review and cancel their subscriptions before being charged.