Noom Hit with Class Action Lawsuit Over ‘Deceptive, Illegal’ Automatic Renewal Scheme [UPDATE]
Last Updated on July 21, 2022
April 27, 2022 – Noom Auto-Renewal Class Action Settlement Site Is Live
The official website for the Noom automatic renewal class action settlement is live and can be found here:
To file a claim, head to this page and enter your unique claim number and confirmation code exactly as they appear on your personalized notice. If you did not receive a claim number and confirmation code but believe you are covered by the settlement, click the option on the right to file a claim. A PDF copy of the Noom settlement notice can be found here.
Claims must be submitted online or postmarked by June 24, 2022.
The $56 million deal covers all consumers who signed up for Noom between May 12, 2016 and October 6, 2020. The website states that eligible Noom users may receive a payment estimated to range from roughly $30 to $167, depending on the number of subscription payments made, the overall number of claims filed and the “legal strength of the user’s claim as determined by the lawyers and the judge in this case.”
Contact information for the settlement administrator can be found on this page.
Per the settlement site, Noom denies the allegations made by the plaintiffs and any wrongdoing and maintains that its autorenewal and cancellation practices were lawful.
Don’t miss out on settlement news like this. Sign up for ClassAction.org’s free weekly newsletter here.
February 15, 2022 – Noom Subscription Renewal Class Action Settled for $56 Million Plus Credits
Noom has said it will pay $56 million plus an additional $6 million in subscription fee credits to settle the proposed class action detailed on this page.
The plaintiffs’ 49-page memo in support of the proposed deal relays that the parties have “reached a solution that substantially achieves this lawsuit’s goal,” noting that the settlement would also require Noom to make several changes to its autorenewal practices.
If approved, the deal will cover roughly two million U.S. consumers who purchased a Noom healthy weight subscription between May 12, 2016 and October 6, 2020, were charged by Noom for the subscription and did not receive a full refund or chargeback of all Noom healthy weight subscription charges. Those who bought a Noom subscription through the Apple App Store or Google Play Store are excluded from the settlement, court documents state.
According to the plaintiffs, the cash portion of the proposed settlement is “the largest-ever cash recovery for consumers in an autorenewal case,” and the non-monetary relief “goes well beyond past public or private autorenewal settlements.” Under the deal, Noom will “substantially enhance” its autorenewal disclosures and require consumers to take a separate action through a checkbox or digital signature to consent to autorenewal. The company must also implement for at least two years a “cancel button” for consumers looking to more easily cancel their subscriptions.
“Weighing the benefits of settlement against the risks of litigation, the outcome achieved here is an excellent result,” the plaintiffs told the court, noting later that “the more a Class Member paid to Noom, the more they stand to recover from the settlement.”
The proposed settlement, which awaits preliminary approval from the court, is the result of “extensive discovery,” including the production of more than 100,000 documents and the analysis of “billions of data points,” and the work of a stable of consultants and experts in the fields of autorenewal litigation, database discovery, consumer behavior, and customer satisfaction. Should the deal be preliminarily approved, notice will be sent via email and regular mail to those eligible to participate in the settlement.
ClassAction.org will update this page when the official settlement website is launched, so be sure to check back from time to time.
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The explosive growth of weight loss app Noom is fueled by what a proposed class action lawsuit alleges is a “deceptive and illegal” automatic renewal scheme that makes it next to impossible for consumers to cancel their subscriptions.
According to the case, those who sign up for Noom’s “risk-free” trial end up opted into “costly, auto-recurring plans” that they never intended to sign up for and have had difficulty finding their way out of.
To make matters worse, Noom hits new subscribers with up to six months’ worth of non-refundable fees on the very first day of enrollment, the lawsuit says, instead of levying the more typical monthly fee.
The 37-page, six-count complaint further claims Noom has used the global COVID-19 pandemic to its advantage by attempting to exploit its “zero cost” trial period, promising consumers during a time of unprecedented economic hardship and anxiety that the app can improve health and help find “structure and relief during this difficult time.”
“The Company’s concerted pattern of misrepresentations, smokescreens and omissions may benefit Noom’s bottom line, but it is unfair, deceptive, and fraudulent and has resulted in Noom’s unjust enrichment,” the suit alleges.
What Is Noom?
Not to be confused with Zoom, Noom is one of the fastest-growing weight loss programs in the world. With more than 50 million downloads, Noom, backed by a lineup of venture capitalists, has nearly quadrupled its annual revenue within the last year, according to the case, and aggressively markets itself on television, social media, online streaming and in print as a source of personalized coaching from easily accessible, qualified weight loss experts.
As the lawsuit tells it, however, consumers who are drawn to Noom's marketing are misled into believing trials of the program are risk free, can be canceled at any time and come with no commitment.
“None of this turned out to be true,” the case alleges.
Alleged non-disclosures and misrepresentations
In exchange for credit/debit card or PayPal information, Noom allows customers to try its weight loss coaching program “risk free” for two weeks at a cost ranging from $0 to $18.37, the lawsuit says. As soon as the trial period is over, however, Noom activates its auto-renewal program and begins assessing non-refundable membership fees, starting with a lump-sum advance charge of as much as $199.99 to cover six months’ worth of service, the case claims.
The issue, the plaintiff contests, is that Noom fails to obtain customers’ explicit consent before shackling them to its automatic renewal program. Similarly, Noom allegedly fails to adequately disclose—or actively misrepresents—“many material facts” with regard to the trial period and its overall service.
According to the complaint, Noom:
“In short, Noom actively misrepresents and/or fails to accurately disclose the true characteristics of its trial period, its automatic enrollment policy, and the actual steps customers need to follow in attempting to cancel a 14-day trial and avoid automatic enrollment,” the case reads.
On the last day of a customer’s trial period, Noom, rather than adequately disclose its auto-renewal program is about to commence, sends a message relaying that it “won’t be checking in anymore,” which contributes further to a reasonable consumer’s misunderstanding that their relationship with the company is about to end, the lawsuit says.
The plaintiff claims that she, like other Noom customers, was misled into signing up for a trial membership while unaware it would be converted to an automatically renewing subscription. Further, the woman claims she believed she was paying for unlimited access to personalized fitness coaching that Noom did not provide and ended up paying “well in excess” of the $10 billing amount she authorized for a 14-day trial.
Apart from Noom’s apparent misrepresentation of its trial period and subscription service is the company’s alleged obfuscation of its actual weight loss services.
Whereas customers are promised “customized,” “personalized,” and “tailored” weight loss plans and support from Noom’s coaching team, proposed class members end up receiving messages that are “powered by artificial intelligence” and only accessible through the defendant’s smartphone app, according to the suit. Though the bot has a name and a picture icon of a human, it’s not a reachable person and interacts with users only through “impersonal, automated statements,” with user questions answered superficially or sometimes not at all, according to the case.
Many customers, including the plaintiff, do not even understand they’ve been assigned a coach, much less know who their coach is, according to the suit. Those who may reasonably expect to have personalized contact with a Noom coach via phone or email often “are left wondering how to use the program,” the case says.
Does the lawsuit say how to cancel my Noom subscription?
In order to cancel a Noom subscription, a customer must message the automated bot through the Noom app, the lawsuit says. The bot will then respond with system-generated messages directing a customer to cancel their membership and end their Noom subscription through the iTunes App Store or Google Play Store. The case stresses that many who sign up for Noom’s 14-day trial period through the company’s website are unaware that their subscription and membership can only be canceled through this multi-step smartphone-based process.
“Having handed off responsibility for processing cancellations to outside companies iTunes and Google Play, Noom thus knows that its cancellation instructions—telling customers to simply let their coach know—are incorrect and misleading,” according to the suit.
Who’s covered by the lawsuit?
The case looks to cover a class of all Noom customers in the United States—including customers of the companies to whom Noom is a successor—who were automatically enrolled into and charged at least a month’s membership at any time within the applicable statute of limitations period.
Similarly, the complaint aims to cover individualized state classes comprised of those who fit the same criteria.
How can I be a part of the lawsuit?
Generally, there’s nothing you need to do to be considered a part of a class action lawsuit. After a case is filed, it has a long way to go before the time comes to start identifying who might be a class member. If a case gets to that point, notice is typically sent to those who might be able to participate in a settlement. ClassAction.org will track the lawsuit as it winds through the legal system.
For now, sign up for ClassAction.org’s newsletter here.
The lawsuit can be found below.
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A note on class action complaints:
Bear in mind that the information in this blog post summarizes the allegations put forth in the following legal complaint. At the time of this writing, nothing has been proven in court. Anyone can file a lawsuit, with or without the representation of an attorney, for any reason, and ClassAction.org takes no position on the merits of the suit. Class action complaints are a matter of public record, and our objective on this website is merely to share the information in these legal documents in an easily digestible way.
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