Class Action Alleges UFC Owner Violates Calif. Automatic Renewal Law

Zuffa removed to U.S. District Court for Nevada in Las Vegas a class action filed June 30 in the 8th Judicial District Court in Clark County in which plaintiff Saul Garcia alleges the sports promotion company engages in an unlawful automatic renewal scheme for the Ultimate Fighting Championship Fight Pass streaming subscriptions it sells to consumers in California. Zuffa, which owns 49.9% of UFC, denies Garcia’s claims “have any merit” and disputes that he and his putative class members are entitled to any of the relief sought in the complaint, said its notice of removal Wednesday (docket 2:23-cv-01211). UFC’s majority owner, Endeavor Group, isn't named in the complaint. Garcia, a Los Angeles resident, alleges Zuffa’s conduct violates the California Automatic Renewal Law. Under the statute that took effect in July 2022, businesses that offer automatic renewal agreements or continuous service agreements to California consumers must provide the complete automatic renewal terms “in a clear and conspicuous manner and in visual proximity to the request for consent prior to the purchase,” said Garcia’s complaint. They also must obtain “affirmative consent” to the automatic renewal before charging consumers, it said. They also must give consumers an acknowledgment that includes the automatic renewal agreement's offer terms “that also describes the cancellation policy and explains how to cancel,” it said. Zuffa’s Fight Pass subscriptions “fail to comply with these legal requirements,” it said. Zuffa unlawfully charged Garcia’s credit card “and continues to unlawfully charge California consumers" in violation of the statute’s “core requirements,” it said. The complaint, which also alleges violations of the California Unfair Competition Law, seeks restitution of the amounts unlawfully charged Garcia and members of his class, plus injunctive relief to bar Zuffa from future violations.