Soapy Joe’s Carwash Hit with Class Action Lawsuit Over Alleged Automatic Renewal Scheme

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit alleges that car wash operator Soapy Joe’s has deceived consumers by signing them up for automatically renewing memberships and charging them without their knowledge or consent.

Want to stay in the loop on class action lawsuits that matter to you? Sign up for ClassAction.org’s free weekly newsletter.

According to the 37-page filing, customers who visit any of Soapy Joe’s more than 20 locations in California “fall prey” to a scheme whereby they believe they are buying only a single car wash, or a single month of car washes, before unknowingly being enrolled into a recurring membership that’s renewed automatically each month.

The plaintiff, a San Diego County resident, alleges that funds were repeatedly taken from her bank account without consent or authorization, in violation of California law and the federal Electronic Funds Transfer Act.

According to the case, the California Automatic Renewal Law (ARL) requires businesses to explain automatic renewal terms “in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled.” The law also requires a business to clearly and conspicuously disclose prior to sign-up how to cancel the membership, the suit adds.

The lawsuit points out that companies are aware “where the recurring nature of the service, billing practices, or cancellation process is unclear or complicated” consumers may let automatic charges slide. Per the case, “[Soapy Joe’s] employees … omit that memberships will automatically renew unless the customer cancels and omit to tell the consumers how to cancel the membership.”

In effect, Soapy Joe’s has deliberately obstructed the details of paid memberships and the cancellation process in the interest of turning a profit, the complaint alleges. Often, companies will use tactics known as dark patterns to obfuscate information and confuse customers, preventing them from cancelling a service, the suit explains.

Furthermore, the case claims that Soapy Joe’s also disguised the true prices of the memberships customers purchased, as the defendant allegedly gave customers a promotional “discount” price for a one-month membership without disclosing that the membership price would increase after the expiration of the promotional deal.

The plaintiff in this case visited a Soapy Joe’s carwash on or about January 13, 2025, when she signed up for a one-month, $13 membership. According to the lawsuit, the plaintiff wasn’t given any information about pricing or membership renewal, and the consumer didn’t realize she had been incurring additional $25-per-month charges for two months.

Once the plaintiff discovered the charges, she attempted to cancel the membership and obtain a refund, arguing she did not authorize these payments, the lawsuit says. Per the case, Soapy Joe’s did not provide a refund to the plaintiff.

“Contrary to the requirements of ARL,” the lawsuit states, “Defendant did not clearly and conspicuously disclose before the plaintiff was signed up that this membership would automatically renew each month until it was cancelled, how to cancel the membership, or that the membership would increase in price and what new price would be charged.”

According to the filing, Soapy Joe’s is “well aware” that its car wash membership model is deceptive and difficult to navigate.

This class action lawsuit aims to cover any consumers in the United States who, within the appropriate statute of limitations, were charged on a recurring basis by Soapy Joe’s without the business obtaining a written authorization (signed or similarly authenticated) for preauthorized electronic fund transfers, or after the authorization was revoked.

Check out ClassAction.org’s lawsuit list for the latest top class action lawsuits