Cobblestone Car Wash to Pay $1.35 Million in Restitution to 71,235 Members

Key Takeaways

• Cobblestone Car Wash has agreed to pay $1,353,465 in restitution to 71,235 eligible Colorado consumers following a state investigation into its automatic-renewal membership practices.
• Eligible consumers will receive $19 each under the settlement.
• The Colorado Attorney General said more than 30,000 customers experienced membership price increases without the required notice between August 2022 and February 2025.
• More than 40,000 customers allegedly did not receive receipts containing required information about their memberships.
• Cobblestone must provide clearer automatic-renewal disclosures, retainable receipts, advance notice of price increases, and easier cancellation options.
• Customers who enrolled online must have access to a one-step online cancellation option.
• Cobblestone has denied liability, and the settlement does not constitute an admission of wrongdoing.
• The company must submit a consumer-redress plan within 60 days and mail restitution checks within 150 days after the agreement takes effect.
• Cobblestone must maintain its revised membership practices for three years.

What Does the Settlement Mean for Cobblestone Car Wash?

Cobblestone Car Wash has reached a settlement with the Colorado Attorney General following a state investigation into the company’s automatic-renewal membership practices. The agreement requires Cobblestone Denver Opco, LLC, to provide $1,353,465 in restitution to 71,235 eligible consumers.

Under the settlement, each eligible customer will receive $19. The restitution is part of a broader agreement that also requires Cobblestone to change the way it manages monthly car wash memberships in Colorado.

The investigation focused on Cobblestone’s monthly membership program, which allows customers to receive recurring car wash services while paying a recurring monthly fee. Customers remain enrolled until they cancel their membership, making the program subject to Colorado’s rules governing automatic-renewal contracts.

According to the Colorado Attorney General, the investigation found several problems with Cobblestone’s membership practices. More than 30,000 Colorado customers allegedly experienced membership price increases between August 2022 and February 2025 without receiving the required advance notice.

State officials also said that more than 40,000 customers did not receive receipts containing information required under Colorado’s automatic-renewal requirements. Receipts and written acknowledgments are important because they give customers a record of the terms they accepted, including information about recurring charges and cancellation.

The state also raised concerns about the process customers had to follow to cancel their memberships. Under Colorado law, businesses using automatic-renewal contracts must provide consumers with a simple and accessible way to cancel.

The Colorado Attorney General’s official settlement announcement provides the state’s findings and details of the agreement: Colorado Attorney General.

Cobblestone has denied liability. The settlement resolves the state’s investigation without the company admitting that it violated Colorado law.

How Will Cobblestone Implement Changes?

Cobblestone must make significant changes to its automatic-renewal membership procedures under the settlement. The requirements cover how memberships are sold, how terms are disclosed, how price increases are communicated, how customers receive documentation, and how memberships can be canceled.

One of the most important changes is the introduction of a one-step online cancellation option. Customers who enrolled in a Cobblestone membership online must be given access to a direct online cancellation link.

The requirement is intended to make cancellation straightforward. Instead of requiring customers to navigate a complicated account-management process or contact the company through multiple channels, eligible online members must be given a direct method for ending their recurring membership.

Cobblestone must also improve its disclosures for trial periods and promotional memberships. Customers must receive clearer information about what happens when a trial or promotional period ends and whether the membership will automatically continue as a paid subscription.

The company must provide customers with retainable receipts or acknowledgments containing important membership information. These records are intended to allow consumers to review their agreement after enrollment rather than relying on information presented only during the initial sign-up process.

Price increases are another major part of the settlement. Cobblestone must notify monthly members about plan price increases at least 25 days before the new price takes effect. This requirement directly addresses the state’s allegations concerning customers who experienced membership rate increases without the required notice.

The company must also provide information about material changes to membership plans and send periodic reminders that an automatically renewing subscription will continue unless the customer cancels it.

These changes will remain in place for three years. As a result, the settlement requires Cobblestone to make sustained changes to its Colorado membership operations rather than simply issuing customer refunds.

The settlement also establishes specific deadlines for the restitution process. Cobblestone must submit a consumer-redress plan within 60 days, and restitution checks must be mailed within 150 days after the agreement takes effect.

What Impact Will This Have on the Car Wash Industry?

The Cobblestone settlement could have implications for other car wash businesses that offer unlimited monthly memberships. Subscription programs have become an important part of the car wash industry, but recurring billing also creates obligations under state automatic-renewal and consumer-protection laws.

The case demonstrates that compliance involves more than simply displaying terms when a customer joins. Businesses must also consider how they provide receipts, communicate price changes, remind customers about continuing subscriptions, and allow customers to cancel.

Colorado’s automatic-renewal requirements establish rules for disclosures, written acknowledgments, cancellation procedures, and renewal notices. The official Colorado General Assembly record for HB21-1239 provides the legislative details: Colorado General Assembly.

For car wash companies operating in Colorado, the settlement provides a clear example of the types of membership practices that can attract regulatory scrutiny. Businesses using recurring memberships may need to review their enrollment pages, confirmation emails, receipts, pricing notices, renewal reminders, and cancellation systems.

The cancellation requirement is particularly relevant to companies that allow customers to join online. Consumers increasingly expect to manage their subscriptions through the same channel they used to purchase them. A cancellation system that is significantly more difficult than the enrollment process can create consumer-protection concerns.

Price-change notifications are another important issue. A customer who agrees to a recurring monthly charge needs to know when the amount being withdrawn from their account will increase. Providing advance notice gives customers an opportunity to review the change and decide whether they want to continue their membership.

The Cobblestone settlement therefore has significance beyond the company’s $1.35 million restitution obligation. It reinforces the importance of designing subscription programs around clear disclosures and meaningful customer control.

How Will Customers Be Affected?

The immediate financial benefit for eligible customers is a $19 restitution payment. The settlement establishes a total restitution amount of $1,353,465 for 71,235 consumers.

Customers should understand that this settlement payment is separate from refunds Cobblestone issued during the investigation. According to the Colorado Attorney General, the company had already refunded $253,406 to more than 4,000 consumers while the investigation was underway.

The settlement establishes a new restitution obligation for the eligible consumer group. Cobblestone will be responsible for administering the payments and following the deadlines established by the agreement.

For current and future customers, the operational changes may be more significant over time. Members should receive clearer information when they sign up, including information about automatic renewal and what happens after a promotional period.

Customers should also receive documentation they can retain. This gives members a record of their agreement and the information needed to understand how the membership works and how it can be canceled.

Another important change involves price increases. Cobblestone must notify monthly members at least 25 days before a membership price increase takes effect. This gives customers an opportunity to review the new price before it becomes part of their recurring bill.

Online cancellation should also become easier. Customers who enrolled online will have access to a one-step cancellation option, allowing them to end their membership through an online process.

Not every Cobblestone customer should assume they are automatically eligible for the $19 payment. The settlement establishes specific eligibility criteria, and the 71,235 consumers represent the group identified under the agreement.

What Does This Mean for the Future of Cobblestone Car Wash?

The settlement creates a detailed compliance framework for Cobblestone’s Colorado membership program. For the next three years, the company must maintain revised procedures covering automatic-renewal disclosures, trial periods, receipts, price-change notices, renewal reminders, and cancellation.

The financial obligations are also substantial. Cobblestone will provide $1,353,465 in restitution to eligible consumers and pay $20,000 toward reasonable costs associated with the state’s investigation. The company had already issued $253,406 in refunds to more than 4,000 consumers during the investigation.

Despite the settlement, Cobblestone has denied liability. The agreement resolves the investigation without an admission that the company violated Colorado law.

The next stage involves implementing the consumer-redress program and the required business-practice changes. Cobblestone must submit its redress plan within 60 days and mail restitution checks within 150 days after the settlement takes effect.

For customers, the long-term changes are centered on transparency and control. Membership terms should be easier to understand, receipts should provide a record of the agreement, price increases should come with advance notice, and online members should have a straightforward way to cancel.

The settlement also provides a warning for businesses that rely on recurring memberships. Automatic billing can be convenient for both companies and customers, but the convenience of recurring payments does not eliminate consumer-protection obligations.

Car wash operators that offer monthly unlimited-wash plans in Colorado may therefore need to pay close attention to how their subscription programs work from enrollment through cancellation. Clear terms, proper documentation, advance notices, and easy cancellation can help ensure that recurring memberships comply with state requirements.

For Cobblestone, the settlement marks a significant change in its Colorado membership operations. For consumers, it provides restitution and new protections intended to make recurring car wash memberships easier to understand and manage.

Frequently Asked Questions

Q: How much will Cobblestone Car Wash pay in restitution?

A: Cobblestone Denver Opco, LLC, will provide $1,353,465 in restitution to 71,235 eligible consumers under the settlement with the Colorado Attorney General.

Q: How much will each eligible customer receive?

A: Each eligible consumer will receive $19 under the settlement’s restitution program.

Q: Why did Colorado investigate Cobblestone Car Wash?

A: The Colorado Attorney General investigated Cobblestone’s automatic-renewal membership practices. State officials said more than 30,000 customers experienced membership price increases without the required notice between August 2022 and February 2025. The state also said more than 40,000 customers did not receive required receipts containing membership information.

Q: Did Cobblestone admit wrongdoing?

A: No. Cobblestone has denied liability. The settlement resolves the state’s investigation and requires restitution and changes to the company’s practices, but it does not constitute an admission of wrongdoing.

Q: What changes must Cobblestone Car Wash make?

A: Cobblestone must improve automatic-renewal and trial-period disclosures, provide retainable receipts or acknowledgments, give monthly members at least 25 days’ notice of plan price increases, provide information about material plan changes, issue periodic renewal reminders, and provide easier cancellation options.

Q: Can Cobblestone customers cancel their memberships online?

A: Yes. Under the settlement, customers who enrolled online must have access to a one-step online cancellation option.

Q: How much notice must Cobblestone provide before increasing membership prices?

A: Cobblestone must notify monthly members at least 25 days before a membership price increase takes effect.

Q: Did Cobblestone already refund some customers?

A: Yes. The Colorado Attorney General said Cobblestone had already refunded $253,406 to more than 4,000 consumers during the investigation. Those refunds are separate from the $1,353,465 restitution required under the settlement.

Q: What Colorado law applies to automatic-renewal memberships?

A: Colorado’s automatic-renewal requirements include provisions established through HB21-1239. The law addresses disclosures, written acknowledgments, renewal terms, and cancellation procedures for automatically renewing consumer contracts.

Q: When will Cobblestone customers receive their settlement payments?

A: Cobblestone must submit a consumer-redress plan within 60 days and mail restitution checks within 150 days after the settlement takes effect.

Q: How long must Cobblestone follow the new requirements?

A: Cobblestone must maintain the required changes to its Colorado membership practices for three years.