Georgia resident, Francisco Garcia, has filed a class action lawsuit against Microsoft claiming that they allowed his underage son to subscribe then auto-renewed the subscription without authorization.
Francisco's son, Silvario, used his father's debit card to subscribe for $49.99. One year later, Microsoft billed him again for renewal. This, Francisco claims, sent his checking account into overdraft, causing his bank to charge him a $35.00 penalty.
Microsoft refunded the subscription renewal fee but refused to cover the bank penalty.
The lawsuit claims that by accepting a subscription from a minor and automatically renewing it without consent, Microsoft "fraudulently induced a contractual relationship for Xbox Live services".
Garcia originally filed his suit in state court in Georgia in August, but Microsoft filed a motion to have it moved to federal court in September.
In his lawsuit, Garcia seeks unspecified damages while asking the court to broaden the case to cover all Xbox Live customers in Georgia hit with similar problems.
Microsoft asked the federal court to dismiss the case, claiming that Silvario Garcia misrepresented his age when he subscribed to Xbox Live by falsely stating that he was at least 18 years old.
