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Noom Auto Renewal Class Action Settlement Overview:
- Who: Eight plaintiffs have asked a judge to approve a proposed class action settlement with Noom Inc.
- Why: Noom agreed to pay $56 million to settle a class action lawsuit challenging its automatic subscription practices.
- Where: The lawsuit was filed in New York federal court.
Noom Inc. has reportedly agreed to pay $56 million to settle a class action lawsuit that challenges the company’s automatic renewal practices for its popular weight loss app.
The proposed Noom class action settlement will reportedly create a $56 million cash fund plus $6 million in subscription fee credits.
On Feb. 11, eight plaintiffs asked a New York federal judge to approve the proposed Noom settlement.
They filed the Noom class action lawsuit on behalf of themselves and a proposed class of U.S. consumers who were charged for an automatically renewing subscription to Noom’s Healthy Weight program.
They claim that Noom’s enrollment, automatic renewal,and cancellation practices violate California’s Automatic Purchase Renewal Statutes, New York’s General Business Law and the common law.
Noom Settlement Offers Compensation, Policy Changes
Class members of the proposed Noom settlement include all individuals who purchased a Noom Healthy Weight Subscription in the United States using the Noom website or mobile app between May 12, 2016, and Oct. 6, 2020, and who were charged by Noom for the subscription and did not receive a full refund or chargeback of all of the subscription charges.
Consumers who purchased a Noom subscription via the Apple App Store of Google Play Store are excluded from the Noom settlement.
Approximately 2 million consumers may be eligible for benefits from the Noom class action settlement if it is approved.
The plaintiffs claim that the compensation proposed in the Noom settlement “is the largest-ever cash recovery for consumers in an auto renewal case, far exceeding payments in past private and public cases.”
In addition to providing cash payments to eligible class members, the proposed Noom settlement also requires Noom to enhance its auto renewal purchase disclosures and require consumers to complete a separate action such as a digital signature or checkbox to indicate acceptance of an automatic renewal.
“Weighing the benefits of settlement against the risks of litigation, the outcome achieved here is an excellent result,” the plaintiffs state.
Under the terms of the proposed Noom subscription settlement, Noom is prohibited from using the language “no commitment” and “100% risk free” on its Healthy Weight payment page. Noom will also be required to send an email reminder to consumers who signed up for a subscription plan of three months or more that includes the cancellation deadline, the date and amount of the next charge and how to cancel the plan.
For those consumers with active subscriptions that did not use Noom in the 12 months following their conversion to a full subscription, Noom will no longer be able to charge them for their subscriptions unless they expressly consent to a renewal.
Have you experienced an unwanted automatic Noom subscription renewal? Tell us your story in the comments below!
The plaintiffs are represented by Steven L. Wittels, J. Burkett McInturff, Tiasha Palikovic, Steven D. Cohen, Ethan D. Roman and Jessica L. Hunter of Wittels McInturff Palikovic and by Benjamin J. Johns of Chimicles Schwartz Kriner & Donaldson-Smith LLP.
The Noom App Subscription Renewal Class Action Lawsuit is Mojo Nichols, et al. v. Noom Inc., et al., Case No. 1:20-cv-03677-KHP, in the U.S. District Court for the Southern District of New York.
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172 thoughts onNoom Reaches $56M Subscription Auto Renewal Class Action Settlement
They are still auto renewing without notice. Called for a refund the day after renewal. After “broken record” repeating I wanted a refund 3 times they finally gave me the refund.