AG Letitia James wins $740,000 settlement from online mental health provider Cerebral

December 29, 2023 Robert Abruzzese, Courthouse Editor

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Photo: Ted Shaffrey/AP

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If you can’t cancel a subscription, it may be time to call the Attorney General’s Office, since New York Attorney General Letitia James announced on Thursday that her office obtained a settlement of nearly a million dollars from an online mental health provider that made their cancellation process too cumbersome.

Continuing her campaign against deceptive subscription practices, Attorney General James announced on Thursday that her office secured a substantial settlement of more than $740,000 with online mental health service provider Cerebral over its prolonged and complex cancellation process.

This follows her recent lawsuit against CerebralCerebral Radio for similar consumer protection violations.

The New York Office of the Attorney General (OAG) found that Cerebral not only made it unduly difficult for consumers to cancel subscriptions but also engaged in unethical practices like manipulating online reviews. As a result of these findings, Cerebral is required to pay $540,000 in restitution to more than 16,500 New Yorkers and must revamp its cancellation process to be more user-friendly.

“Making New Yorkers withstand stressful and extended delays to cancel a subscription for mental health care coverage is unacceptable,” said James. “It is illegal and unfair to make consumers spend extra time or jump through hoops to try to cancel a subscription they no longer need.”

This sentiment echoes her recent action against SiriusXM, where she sued the company for trapping consumers in subscriptions with a deliberately lengthy and burdensome cancellation process. The lawsuit against SiriusXM sought restitution and penalties for violations of New York’s business laws.

Cerebral, known for providing virtual mental health treatment services, came under scrutiny after consumers reported difficulties in canceling their subscriptions. The OAG found that the company exploited the delay in cancellation processing to issue additional charges, including billing consumers for another month’s service when the delay crossed over into a new billing cycle.

The settlement also includes $200,000 in penalties and requires Cerebral to establish a simpler “click-to-cancel” process. Additionally, the company must limit its attempts to retain subscribers to one attempt after an indication of intent to cancel has been made. Cerebral is to issue automatic refunds within 90 days to consumers who were improperly charged.

“The law is clear that companies must make it easy and simple to end a subscription and my office will continue to hold them to that standard,” James said.

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