Background About the Khoday v. Symantec Corp. Class Action Lawsuit
The Khoday v. Symantec Corp. Class Action rose from when Symantec took on Digital River’s services to manage the online store for Symantec in 2000. They handled the site until October 2009. As Digital River handled the store, Symantec controlled the content and offers on the site and any disclosures that customers get during purchases.
From October 2009 until June 2010, Symantec started transitioning the sale of its Norton products to a store that they managed themselves.
During the class period, a customer trying to buy a downloadable Norton product through the Symantec online store could have accessed a hyperlink to start the software’s automatic download.
After buying the product, the customer only had sixty days to download and install the product. After that timeframe, the customer needs to login to their Norton account and restart the download process.
When Digital River was handling Symantec’s online store, they authorized Digital River to offer EDS. It enabled customers to re-download the Norton software they bought after the first 60 days expired. It also allowed them to re-download the software if something happens to their computer or if they get a new one up to a year after they bought the software.
The customers just needed to visit Symantec’s online store and put in their details, and it’ll lead them to the Norton items they bought. If any of them had EDS, they’d have download links.
By October 2009, Symantec started the sale of its Norton products in its online store, and it offered the NDI, which was like EDS. The difference between the two is that NDI allowed the customer to get the most recent edition of what the customer bought.
What Else to Know About the Settlement Case
After buying any Norton software, download insurance got automatically included in the customer’s shopping cart. If they did not want to buy the insurance for the download, they were required to opt-out or remove it from the cart.
Further allegations about the information on the download insurance that customers can read at the point of sale had its location, content, and display changed to get the best customer experience.
Norton customers had the option to call customer service for more details about the insurance. They used a knowledge base that answered the usual questions people asked about the insurance, but they weren’t considered a scripted call center. But they all gave the same details: to download the software, they need to purchase EDS.
While Symantec let go of Digital River, they always informed customers of different “scripts” about how to re-download the software, where they ended up buying either the NDI or EDS.
A judge on the 31st of March 2014 decided that the lawsuit against Symantec Corp. and Digital River Inc will be considered a national class action (Khoday v. Symantec Corp. Class Action). This was based on the finding that people were exposed to misrepresentations by both Symantec and Digital River linked to re-download services.
The lawsuit was filed in January 2011 and claimed that Symantec and Digital River falsified that Electronic Download Service (EDS) and Norton Download Insurance (NDI) were important if in case one of their customers wanted to have a re-download of their software for free. They had the option to buy EDS at a later time if they needed it.
There were claims that Symantec and Digital River misrepresenting the EDS and NDI as the only way customers can re-download the software they bought.
Further allegations also tell how the defendants would automatically place the EDS and NDI in the shopping cart but will not let the customer know of pertinent details such as re-downloading what they bought for free anytime during their subscription period.
What the customers saw was that they can only re-download what they bought after 60 days if they also purchased the EDS or NDI. EDS cost $5.99, and the NDI cost $10.99, which millions of customers bought during the class period.
Further allegations mention the violations of consumer protection laws.
Laws involved are the Minnesota Consumer Fraud Act, California’s Unfair Competition Law, and California’s Consumer Legal Remedies Act, which is by not disclosing to the class members that different cost-free alternative methods to re-download the software they purchased existed.
The defendants denied the claims, but by the 31st of March 2014, the court certified the class action lawsuit.
On the 8th of October 2015, Judge John Tunheim gave his preliminary approval for the Khoday v. Symantec Corp. Class Action Settlement which amounted to $60 million as compensation for the people who bought the insurance for the Symantec download.
Eligible class members will get $50 for each download insurance service they bought during the class period, which will be subject to pro-rata reduction if in case the total claims go over the net settlement fund.
Editor’s Note on Khoday v. Symantec Corp. Class Action Settlement:
This settlement article was requested by one of our subscribers. It covers the old Norton class action filed over allegations that Symantec deceived its customers who bought Norton downloadable program.
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