Xbox Live class action lawsuit spurred by 'unauthorized charges'

How much is a one year subscription to Xbox Live Gold? $60. However, it could end up costing Microsoft a lot more thanks to a new class-action lawsuit filed by a man who claims he was unjustly charged twice for one year's membership.

Ryan Graves claims that after allowing his subscription to lapse with an expired credit card, Microsoft managed to charge him twice for Live service on his new debit card. Graves claims that other Live Gold members have "similarly experienced Microsoft's unauthorized charges."

"Microsoft cannot just charge a consumer's credit or debit card whenever it wants without authorization," E. Michelle Drake, Mr. Grave’s attorney, said in a press release. "Mr. Graves signed up to play games on his Xbox, not to allow Microsoft to play games with his debit card."

The lawsuit claims that Microsoft violated the federal Electronic Funds Transfer Act, and also alleges that the Terms of Use set by Microsoft--which gives "the right for Microsoft to decline to refund users"--is "onerous and unfair." The plaintiff expects "hundreds, if not thousands, of Defendant’s subscribers satisfy the definition of the Putative Class."