AG: Company Deceived Customers, Failed to Offer Easy Cancellation Process
By Hank Russell
An online provider of medications was ordered to pay $400,000 as part of a settlement with the Office of the Attorney General (OAG), which claimed the company deceived customers by locking them into overpriced subscriptions and failing to provide them with a simple cancellation process, which is a violation of New York State law.
On August 24, the OAG’s Bureau of Internet and Technology reached a settlement with Thirty Madison, Inc. As part of the settlement, Thirty Madison must not only pay the money to the state, but it must also change its subscription practices and offer restitution to certain subscribers, including those whose subscriptions automatically renewed.
Based in Summit, New Jersey, Thirty Madison provides both prescription and non-prescription medications for a variety of conditions ranging from hair loss to migraines to skin conditions through its brands Cove, Keeps, and Nurx. An investigation by the OAG found that the company failed to clearly disclose its subscription terms and non-refundable fees and violated the law by failing to provide a simple cancellation process.
Among the charges that Thirty Madison failed to do include:
- Clearly notifying consumers that they were purchasing an auto-renewing subscription and that prices increased after the first order
- Adequately disclosing non-refundable fees associated with a subscription
- Alerting consumers that finalizing certain subscriptions required the disclosure of sensitive personal data
- Informing consumers of how to cancel their subscriptions
- Processing cancellations in a timely manner, resulting in additional charges
Thirty Madison also required customers to complete multiple steps to cancel their subscriptions, causing consumers to receive several additional emails before the company honored a request to cancel.
“As New Yorkers struggle with a rising cost of living, deceptive recurring fees can add up quickly and make life even harder to afford,” said Attorney General Letitia James. “I will not allow New Yorkers seeking accessible health care options to be trapped in costly subscriptions. Companies cannot mislead their customers about subscription terms, and my office will continue to take action to make sure New Yorkers are not unlawfully forced to make expensive recurring payments.”
Long Island Life & Politics reached out to Third Madison. The company replied via email, “Thanks for contacting Thirty Madison’s inbox for press-related inquiries. Our team is out of office for the holidays and will be slower to respond between now and January 3rd.”