COMPANY MADE IT DIFFICULT FOR CONSUMERS TO CANCEL SUBSCRIPTIONS
In late December, the New York State Attorney General’s Office announced that it had reached an agreement with CELEBRAL – an online telehealth company which provides virtual access to different kinds of providers, like licensed therapists, counselors, coaches, and individuals licensed to prescribe medications.
After it received reports the company impeded the subscription cancellation process, the NYAG initiated an investigation and discovered that the company needlessly encumbered a consumer’s ability to discontinue the service – initially requiring an email, then forcing customers to undergo a survey process, and to entertain multiple retention offers, before the cancellation was finalized.
The company is also alleged to have illegally directed its employees to post fake reviews of the service.
In addition to the NYAG procuring a cash payment of some $740,000, which will go to impacted consumers, the company has agreed to facilitate the cancellation process (via a simple “click to cancel” button) and will limit its contacts to those consumers who decide to leave the program.
In a written statement, New York State Attorney General Lettica James noted that, “Making New Yorkers withstand stressful and extended delays to cancel a subscription for mental health care coverage is unacceptable …. It is illegal and unfair to make consumers spend extra time or jump through hoops to try to cancel a subscription they no longer need. The law is clear that companies must make it easy and simple to end a subscription and my office will continue to hold them to that standard.”
Did they cancel each other out there?
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