WHOOP has agreed to put $11 million into a settlement fund over how it told California customers about automatic membership renewals. Gadgets & Wearables reported the deal, which comes from an October 29 federal court filing in a class action that has run for nearly three years.
A judge still has to approve it. And settling isn't the same as losing: the deal doesn't amount to a finding that WHOOP broke the law.
The case was brought by a California customer, Donrick Sanderson. He alleged that WHOOP's checkout didn't do enough to meet California's Automatic Renewal Law, which requires a business to make certain recurring-payment terms clear before it charges you again.
The band and the subscription have always been sold together, so a fight over how memberships renew goes straight to how WHOOP makes its money.
Who it covers
Not every WHOOP owner. The settlement covers people in California who bought a membership through WHOOP's own website, were enrolled in a membership that renewed by itself, and were then charged for at least one renewal after their first membership or commitment period ended.
If you bought somewhere else, or live outside California, this one isn't yours.
There's no fixed payout per person. How much each customer gets depends on how many eligible people end up filing a claim, so the more who claim, the smaller each share.
Why the subscription matters so much here
You can't buy a WHOOP and skip the membership. The band and the subscription have always been sold together, so a fight over how memberships renew goes straight to how WHOOP makes its money.
That's also why the renewal terms matter more than they would for a watch you pay for once. A WHOOP keeps costing money for as long as you wear it, and the charge that matters is the one after your first term ends.
What to do
If you're in California and bought a WHOOP membership on WHOOP's website, keep an eye out for the claim process once a judge approves the deal; you'll have to file to get a share. Everyone else can take a simpler lesson from it: before you buy, check when your WHOOP term ends and what the renewal will charge.
