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Anthropic must face lawsuit over Claude subscription marketing

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Anthropic must face lawsuit over Claude subscription marketing

Business News Tech AI Anthropic must face lawsuit over Claude subscription marketing

US Magistrate Judge Alex Tse in San Francisco on Friday said the plaintiffs plausibly alleged that consumers could interpret Anthropic's marketing to mean Max subscribers would receive five or 20 times more usage than lesser-tier subscribers over the course of a month.

Artificial intelligence startup Anthropic must face claims that it misled customers by advertising its premium Claude Max subscriptions as providing "5x or 20x more usage" than lower-priced plans, a federal judge in California has ruled. US Magistrate Judge Alex Tse in San Francisco on Friday said the plaintiffs plausibly alleged that consumers could interpret Anthropic's marketing to mean Max subscribers would receive five or 20 times more usage than lesser-tier subscribers over the course of a month. Tse allowed claims for deceptive advertising under California's consumer state law, negligent misrepresentation and breach of contract to proceed, but dismissed other claims, including one filed under the state's unfair competition law.

The judge allowed the plaintiffs to file an amended lawsuit. Anthropic and its attorneys at Weil, Gotshal & Manges did not immediately respond to requests for comment. Attorneys for the plaintiffs had no immediate comment. Theproposed class action was filed in September by two Claude Max subscribers, including Solomon Smith, a computer-science student who said he used the AI chatbot for coding projects and other work. The plaintiffs allege Anthropic's marketing overstated the benefits of its $100- and $200-per-month Max plans. Claude Max subscribers receive five or 20 times more usage per five-hour session than Pro users, but remain subject to weekly caps that are not five or 20 times higher, according to the lawsuit.


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