SACRAMENTO, Calif. — Users of the popular streaming subscription service Peacock could be getting some money back if a proposed settlement is approved.
The deadline to apply is just around the corner, but an expert ABC10 spoke with says settlements raise some important questions consumers will need to answer for themselves before cashing in.
The settlement is the result of a lawsuit filed last year claiming some Peacock customers in California were charged for automatic renewals without the proper authorizations required in the state.
According to the notice sent to customers, the court hasn’t decided who is right. Peacock chose to settle the case without admitting liability, costing them around $4 million.
Consumers could get a piece of the money if they were enrolled in an automatically renewing subscription directly though Peacock with a California billing address from Sept. 15, 2019, through Feb. 27, 2024.
According to the notice, qualifying individuals may get about $18.
“Filling out all those forms and filling out a bunch of paperwork just to get that $18 is so tedious, is so cumbersome, is so time intensive,” said Goldenstone Wealth owner Sanjay Varshney.
So, is it worth the time?
“Some people will say, ‘Hey, I’ll take the $18 because why leave free money on the table,’” said Varshney.
The “free money” will likely come at a cost — Uncle Sam. Finance experts say the $18 is taxable income.
If the lawsuit is nearly $4 million, then where is the other money going? Most of the settlement goes to the lawyers, which is why there’s little left for remaining customers.
The case isn’t done yet either. There’s a hearing on the final approval of the settlement set for November.
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