An online stock photo company is being sued over allegations that its policy allowing credits to expire after one year is illegal.
Lisa Sandler filed the lawsuit May 14 in U.S. District Court for the Central District of California against iStockphoto, alleging the company had policy where consumers credits purchased would expire if not used within a year of purchase.
The complaint states the “Pay-as-you-go” credit model was used until December 2014, when, during that month, the online company modified its policy, which stated consumers' credits wouldn't expire if they logged into their account within before the one-year expiration date. The lawsuit says the expiring credits are illegal, and violate federal and California state law that prohibits the “expiring of electronic promises/gift certificates in just one year.”
“Specifically, federal law limits such practice to no less than five years and California law prohibits such credits from ever expiring,” the lawsuit said.
Sandler seeks class status for all users of iStockphoto, and also seeks restitution for consumers, and an unspecified amount in damages. She is represented by attorney Brandon C. Fernald of Fernald Law Group in Los Angeles.
United States District Court for the Central District of California case number: 2:15-cv-03659.