In July 2022, a Federal Judge in the Southern District of New York granted final approval of a $62 million settlement of Wittels McInturff Palikovic’s nationwide class action complaint against weight-loss app company Noom, Inc. for Noom consumers who were automatically enrolled in multi-month plans and/or had difficulty canceling their trial plans.
Under the settlement, Noom paid $56 million, plus provided $6 million in subscription fee credits to settle this case. As part of the settlement, Noom has also agreed to adopt certain business practice changes for a period of two years. Specifically, Noom will:
Update its pre-purchase enrollment procedure so that only customers who check a box giving their explicit consent will be automatically enrolled into a Healthy Weight Subscription plan after the trial period ends;
Update its pre-purchase disclosures to provide even more explicit instructions as to Noom’s subscription and cancellation policies;
Turn off autorenewal for users in the Class who have ceased any activity in the app for the first twelve (12) months after the trial ended;
Send electronic receipts to Healthy Weight users for subscription charges;
Send one reminder email to Healthy Weight users prior to the first autorenewal charge for subscriptions that have an initial term of at least 3 months; and
Update its website to allow users to more easily find the place to cancel.
The Noom class action complaint alleging fraud and various state law claims can be found by clicking here.
For more information, contact us.
Update on Cy Pres:
August 2024 NCL Report
August 2024 NCLC Report