E-Commerce Firm Xcotton Co. Faces Class Action Over Unlicensed Warranty Services
San Francisco Superior Court has been presented with a class-action complaint (CGC-25-624694) against Xcotton Co., alleging the cross-border warranty provider sold extended service contracts to California residents without the required state registration. The lawsuit, filed on 23 April 2025, could compel Xcotton to refund all premiums collected since 2021 if the court certifies the class.
Merchants who integrated Xcotton’s protection plans may face subpoenas for sales records and potential financial liabilities, including chargebacks and customer-service costs. The case highlights regulatory risks for unlicensed financial service providers operating in California’s stringent consumer protection landscape.