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Consumers allege Canary Connect breached implied contract with paywall

By Bree Gonzales | Dec 14, 2018

NEW YORK (Legal Newsline) – Consumers are seeking damages from a New York company after it put features of its home security systems behind a paywall.

Jeffrey B. Reifman, Jonathan Berg, Julie Harley, Connor Van Gessel, Arline Van Gessel and Miguel Moreno filed a complaint on behalf of all others similarly situated on Dec. 5 in the U.S. District Court for the Southern District of New York against Canary Connect Inc. alleging breach of implied contract and other counts.

According to the complaint, the plaintiffs allege that they purchased defendant's home security products relying on its marketing of the products' features, including representation on the product’s packaging, that there would be no contract or monthly fee. 

"However, on or around Oct. 3, 2017, Canary unilaterally changed the products’ characteristics, removing three key features and re-offering them to consumers under Canary’s Membership Fee paywall of $9.99 per month. Consumers, including the plaintiffs, who purchased the products prior to Oct. 3, 2017, were not exempted from these changes," the suit states.

The plaintiffs hold Canary Connect Inc. responsible because the defendant allegedly breached the implied contracts by unilaterally removing key features.

The plaintiffs request a trial by jury and damages, prejudgment interest; interest on the amount of any and all economic losses, at the prevailing legal rate; an order of restitution and all other forms of equitable monetary relief; injunctive relief, attorneys’ fees, expenses and costs of suit. They are represented by Nina Varindani of Faruqi & Faruqi LLP in New York and others.

U.S. District Court for the Southern District of New York case number 1:18-cv-11365-PGG 

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Faruqi & Faruqi, LLP U.S. District Court for the Southern District of New York New York Division WALSH PLLC

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