1-800-Flowers.com will pay $375,000 to New York and provide refunds to eligible consumers under an agreement resolving a state investigation into its automatically renewing Celebrations Passport program.
The state Attorney General's Office found that the company did not clearly disclose material subscription terms in some enrollment flows and made cancellation options difficult to understand, according to an assurance of discontinuance signed by the company.
Celebrations Passport was sold as an annual membership offering free shipping and no service charges across several company brands. Initial prices ranged from $14.99 to $29.99, while renewals cost $29.99.
Eligible New York consumers who complained about an unexpected enrollment, renewal, price increase or cancellation issue may receive a full refund of their most recent membership fee. Other qualifying New York consumers may receive $20 if the membership renewed for a second year and they made little or no use of its benefits.
Certain consumers elsewhere in the United States may also qualify for $20 if they bought the membership during the covered period and did not use its free-shipping benefits. The agreement generally covers online purchases made from Feb. 9, 2021, through June 26, 2022, and mobile app purchases through Dec. 21, 2022.
The company must issue restitution within 180 days of the agreement's effective date. It must first attempt electronic refunds and use checks or digital payment options when that is unsuccessful.
The agreement also requires clearer enrollment disclosures, an online cancellation mechanism, advance renewal notices and confirmation of eligible refunds. Consumers who turn off automatic renewal without receiving a refund must be allowed to keep paid benefits through the end of the membership term.
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