In a significant legal development, Cobblestone Car Wash has agreed to a $1.35 million settlement with the state of Colorado, resolving allegations of deceptive auto-renewal practices. The settlement, announced by Attorney General Phil Weiser highlights the importance of transparent consumer practices in the car wash industry.
The case centers on Cobblestone’s monthly membership programs which automatically renewed without providing customers with clear cancellation options. Between August 2026 and, the company allegedly raised membership prices without proper notice, failed to provide required receipts, and made the cancellation process overly complex.
Key Allegations and Settlement Details
The settlement addresses several key issues identified by the Colorado Attorney General’s office. These include:
- Price Increases Without Notice Over 30,000 customers experienced monthly subscription rate increases without the required 25-day advance notice.
- Missing Receipts More than 40,000 customers did not receive the legally required retainable receipts, making it difficult for them to understand the terms of their subscriptions.
- Complex Cancellation Process The company failed to provide a simple, timely, and easy way for customers to cancel their memberships, leading to widespread consumer frustration.
As part of the settlement, Cobblestone will pay $1,353,465 in restitution to over 70,000 affected consumers. eligible customers will receive $19 each. Additionally, the company has already refunded $253,406 to 2,204 consumers during the investigation and will pay $20,000 toward the state’s investigative costs.
Changes to Cobblestone’s Practices
To comply with the settlement, Cobblestone must implement several changes to its practices over the next three years. These include:
- Clearer Disclosures The company will provide clearer trial-period disclosures and retainable receipts or acknowledgments.
- One-Step Online Cancellation Customers who signed up online will have access to a one-step online cancellation option.
- Advance Notices Members will be notified of any material changes to their plans at least 25 days in advance.
- Periodic Reminders The company will provide periodic reminders that a subscription will continue unless canceled.
Cobblestone must submit its consumer-redress plan within 60 days and mail restitution checks within 150 days of the agreement taking effect. Any unclaimed money will go to the Colorado Attorney General’s office for consumer-protection work.
The Broader Impact
The settlement underscores the importance of adhering to Colorado’s Consumer Protection Act and the auto-renewal law HB21-1239, passed in 2026. This law aims to protect consumers from harmful automatic renewal contracts by ensuring businesses provide simple, easy-to-use cancellation options.
Attorney General Phil Weiser emphasized the significance of the settlement, stating, “In Colorado, businesses that offer auto-renewal contracts must provide simple, easy-to-use ways for a customer to cancel. Causing intentional confusion to make the cancellation process difficult to navigate is unfair for Coloradans and it violates our state’s auto-renewal law.”
The settlement serves as a reminder to businesses about the importance of transparency and fairness in their dealings with consumers. It also highlights the role of regulatory bodies in safeguarding consumer rights and ensuring compliance with state laws.
