Audible Sued: Do Expiring Credits Violate the Law?

Case Overview: A new lawsuit is challenging Audible's credit expiration policy, claiming it violates Washington state law and deprives consumers of purchased credits.

Consumers Affected: Audible subscribers who have lost credits due to expiration.

Court: U.S. District Court for the Western District of Washington

Audiobook platform Audible violates Washington state’s gift certificate law by allowing credits purchased through memberships to expire after a year,  a new lawsuit claims. The case alleges Audible’s policy unlawfully deprives consumers of the value of credits they’ve already paid for, and argues that, under Washington law, gift certificates are generally prohibited from having expiration dates unless they meet specific exceptions. 

Audible, which specifies Washington law governs its terms, classifies its credits as non-refundable and valid for only 12 months, but the lawsuit alleges thaht policy violates the regulations and seeks damages and an injunction to prevent future expirations.

Audible Subscriber Claims Lost Credits Due to Expiration Policy

Jonathon Hollis, a Los Angeles resident and longtime Audible Premium Plus subscriber, filed the proposed class action lawsuit against the platform claiming he lost numerous credits over the past six years due to the company’s expiration policy. Hollis says he paid for these credits through his membership, only to see them vanish before he could use them, resulting in financial loss.

Hollis said he wanted to continue to purchase credits, but said he would only do so if Audible guarantees they will not expire unlawfully. He wants the lawsuit to lead to changes in Audible’s credit policies, ensuring they comply with Washington’s legal standards.

Lawsuit Alleges Audible's Credit Expiration Violates State Laws

Audible offers various membership plans, such as the Premium Plus monthly or annual subscriptions, which provide users with credits to purchase audiobooks. Credits act as a form of digital currency that members use to buy audio titles, which Audible markets as “yours to keep forever.”

Credits are flexible, according to Audible’s terms; they can be used on any account-accessible device, shared among family and friends, or gifted as audiobooks. However, Audible’s policy requires credits to be used within a year of issuance, or they expire—a condition that has now become the basis for legal scrutiny.

Audible and Amazon Face Other Legal Challenges

This isn’t the first time Audible or its parent company, Amazon, has faced legal trouble. In 2023, Audible was sued in California over its auto-renewal subscription practices, with plaintiffs alleging violations of the state’s Automatic Renewal Law due to inadequate disclosure and consent mechanisms.

Amazon has also been entangled in multiple lawsuits. In September, it defended Audible against claims of monopolizing the audiobook retail market by enforcing exclusivity provisions on self-published authors. Other ongoing legal battles include accusations of deceptive pricing for Fire TV products and an FTC lawsuit alleging Amazon uses misleading tactics to enroll and retain Prime members.

In his lawsuit, Hollis wants to represent Audible consumers nationwide in his claims of violations of Washington’s Gift Certificate Law and Consumer Protection Act, as well as quasi-contract. He is seeking a change to Audible’s policy, damages, injunctive relief, costs, fees, and interest.

Case Details

• Lawsuit: Hollis v. Audible, Inc.
• Case Number: 2:24-cv-01999 
• Court: U.S. District Court for the Western District of Washington 

Plaintiffs' Attorneys

• Jonas Jacobson (Dovel & Luner, LLP)

Are you an Audible subscriber? What are your thoughts on their credit expiration policy? Share your experience in the comments below.