Claude '20x usage' sparks lawsuit: Key restrictions hidden behind two layers of links, US judge allows lawsuit to proceed

Beating AI News Flash: Anthropic has been sued for allegedly misleading advertising regarding Claude Max subscription quotas. On November 6, a federal court in California rejected Anthropic's request to dismiss all claims. The judge found that the official claims of "5x, 20x usage" may mislead consumers and allowed some allegations to proceed.

The lawsuit was first filed in June. Previously, Claude Pro was priced at $20 per month, Max 5x at $100, and Max 20x at $200. But the plaintiffs found that the advertised multipliers applied only to the usage quota per 5 hours, and there was also a weekly total quota limit.

According to the Sonnet 4 usage data cited by the plaintiffs, Max 5x actually offered only about 3.5 times the weekly usage of Pro, and Max 20x only about 6 times. The $200 plan cost twice as much as the $100 plan, but the expected weekly usage was only about 71% higher.

Anthropic argued that these limits were already disclosed on its official website. But the judge noted that users had to click through two consecutive layers of links from the sales page to find the explanation that "the multipliers apply only to each session." Since the plans are billed monthly, consumers could reasonably interpret 20x as the usage amount for the entire month.

However, the judge did not fully side with the plaintiffs. The court allowed claims of negligent misrepresentation, breach of contract, and some consumer protection allegations to proceed, but temporarily dismissed other claims. Among them, the plaintiffs did not sufficiently prove that Anthropic maliciously reduced quotas; the claims under false advertising law and unfair competition law also did not meet the legal conditions for seeking an injunction or demanding refunds.

It is worth noting that Anthropic adjusted its plans on October 30. The original Max 5x was renamed Max, with the weekly quota explicitly labeled as 5 times that of Pro; Max 20x was renamed Ultra, with the weekly quota labeled as 10 times that of Pro, and verified accounts are no longer subject to the per-5-hour quota limit. The prices of both tiers remain unchanged.

The case is still in its early stages. The court has not found Anthropic to have violated the law, nor has it approved class action status, nor has it awarded damages. The plaintiffs may amend their complaint by December 2; if they do not, Anthropic must formally respond to the existing complaint by December 16.