The Diet App Noom Reaches a $62 Million Settlement Over Automatic Renewals
The weight loss app Noom Inc. will pay $62 million to customers forced into renewals they didn’t want.
The settlement was filed Friday night in New York federal court, according to Reuters. It requires Noom to pay $56 million in cash and offer $6 million in subscription credits. The settlement still needs court approval.
Noom offered a trial period for its weight loss coaching program on its app “at zero cost,” according to the complaint. However, Noom allegedly charged customers a lump sum for its entire program after the trial period expired, with costs as high as $199. The charge was automatic and allegedly occurred even if customers didn’t access the service or download the app. Noom’s Chief of Operations and Chief Financial Officer Adam Fawer acknowledged, “If someone is only staying one month, we’re not making a whole lot of money off that person.”
