Attorney General James Secures $400,000 from Online Medication Provider for Deceiving Consumers

 

Parent Company of Popular Online Health Providers Like Keeps and Nurx Trapped Customers in Expensive Recurring Subscriptions That Were Difficult to Cancel

New York Attorney General Letitia James today secured $400,000 from Thirty Madison, Inc. (Thirty Madison), an online provider of medications, for misleading and deceiving customers, causing them to sign up for costly recurring subscriptions. 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 Office of the Attorney General (OAG) found that Thirty Madison failed to clearly disclose its subscription terms and non-refundable fees. Thirty Madison also failed to provide a simple cancellation process, in violation of the law. As a result of OAG’s investigation, Thirty Madison must pay $400,000 to the state, change its subscription practices, and offer restitution to certain subscribers, including those whose subscriptions automatically renewed.

“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 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.”

New York law requires subscription terms to be clearly disclosed to customers, including the minimum length of the subscription, whether the subscription renews automatically, and the cancellation policy. Businesses must also obtain affirmative consent for automatic renewals and offer an easy cancellation mechanism. The OAG’s investigation found that Thirty Madison did not clearly disclose its subscription terms to consumers and made it difficult to cancel subscriptions, in violation of New York law. Thirty Madison also failed to:

• Clearly notify consumers that they were purchasing an auto-renewing subscription and that prices increased after the first order;
• Adequately disclose non-refundable fees associated with a subscription;
• Alert consumers that finalizing certain subscriptions required the disclosure of sensitive personal data;
• Inform consumers of how to cancel their subscriptions; and
• Process 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.

The settlement with OAG requires Thirty Madison to pay $400,000 to the state and provide refunds to eligible subscribers who filed complaints with Thirty Madison, the Federal Trade Commission, Better Business Bureau, or OAG. Thirty Madison must also provide restitution to eligible consumers, including those who were charged after requesting cancellation, charged for products that were not shipped, charged for products they did not specifically agree to receive, and charged unexpected fees.

Thirty Madison must also improve its disclosures, ensure consumers' cancellations are processed quickly, inform consumers of all its intake requirements, and automatically process certain refunds.