Weight loss app Noom settles $62 million billing lawsuit

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  • Top weight loss app Noom has settled a $62 million lawsuit over complaints about its billing.
  • The lawsuit alleged that Noom misled customers into signing up for low-cost trials that resulted in expensive and hard-to-cancel subscriptions.
  • Noom said it would change its practices to make pricing and policies more transparent.

Noom, the popular


weightloss

and wellness app, settled a lawsuit alleging that the company misled consumers subscribe to expensive and difficult-to-cancel subscriptions.

The company will pay $56 million in cash and $6 million in Noom subscription credits, according to the preliminary settlement document filed Feb. 11.

The class action lawsuit involved eight former customers who alleged that Noom charged them without their consent, for amounts ranging from $45 to $400. Thousands of complaints to the Better Business Bureau have reported similar experiences.

A common complaint was that users signed up for a free or low-cost trial and were asked to cancel through a coach, who they said did not respond before the time expired. test. As a result, users reported being inadvertently charged for several months for the equivalent of a year’s worth of services, Previously reported insider on the basis of documents received via a request under the Freedom of Information Act.

A former senior Noom software engineer was quoted in the lawsuit as saying that canceling Noom was “difficult by design.” The design, the engineer said, was intended to generate revenue from customers who didn’t cancel in time to avoid fees.

Noom has revised its billing and subscription practices, pricing information, and customer support, according to a letter from its co-founders, Artem Petakov and Saeju Jeong. Changes include clarification of subscription and pricing details, ease of cancellation and increased customer support, the letter says.

In addition to auto-renewal and billing complaints, Noom has come under fire from experts and consumers for its weight loss program. While different from other diets, the app has previously set very low calorie goals that dietitians say put users at risk for side effects. Experts also say that Noom’s approach to food color coding can help disordered thinking around foodor stigmatizing certain foods, Insider previously reported.

Noom has also been criticized by customers and employees for its coaching model. Former employees have already told Insider that despite advertisements for personalized weight loss support, trainers juggle between 300 and 800 clients at a time, relying heavily on “cut-and-paste” messaging.

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