Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints (2024)

Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints (1)

Crystal Cox/Business Insider
  • Top weight loss app Noom has settled a lawsuit for $62 million to address complaints about its billing.
  • The suit alleged Noom misled customers into signing up for low-cost trials that led to costly, hard-to-cancel subscriptions.
  • Noom said it will change its practices to make pricing and policies more transparent.

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Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints (3)

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Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints (4)

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Noom, the popular weight loss and wellness app, has settled a lawsuit alleging the company misled consumers into signing up for expensive, hard-to-cancel subscriptions.

The company will pay $56 million in cash and $6 million in Noom subscription credits,according to the preliminary settlement document filed February 11.

The class action suit involved eight former customers who alleged that Noom charged them without their consent, in amounts ranging from $45 to $400. Thousands of complaints to the Better Business Bureau reported similar experiences.

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A common complaint was that users signed up for a free or low-cost trial and were told to cancel through a coach, who they said did not respond before the trial expired. As a result, users said they were inadvertently billed for several months to a year's worth of services, Insider previously reported based on documents received through a Freedom of Information Act request.

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A former senior software engineer for Noom was quoted in the suit as saying that canceling Noom was "difficult by design." The design, the engineer said, was meant to generate income from customers who didn't cancel in time to avoid charges.

Noom has revised its billing and subscription practices, pricing disclosures, and customer support, according to a letter from its co-founders,Artem Petakov and Saeju Jeong. The changes include making subscription and pricing details more clear, making it easier to cancel, and increasing customer support, the letter says.

In addition to the auto-renewal and billing complaints, Noom faced criticism from experts and consumers for its weight loss program. While branding itself as different from other diets, the app has previously set very low calorie goals that dietitians say put users at risk of side effects. Experts also say Noom's approach to color-coding food may contribute to disordered thinking around food, or stigmatizing certain foods, Insider previously reported.

Noom has also been under fire from customers and employees for its coaching model. Former employees previously told Insider that, despite advertisem*nts of personalized weight loss support, coaches juggle between 300 up to 800 clients at once, relying heavily on "copy paste" messages.

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Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints (2024)

FAQs

Noom settles billing lawsuit for $62 million and promises to change business practices to address customer complaints? ›

Top weight loss app Noom has settled a lawsuit for $62 million to address complaints about its billing. The suit alleged Noom misled customers into signing up for low-cost trials that led to costly, hard-to-cancel subscriptions. Noom said it will change its practices to make pricing and policies more transparent.

Why is there a lawsuit against Noom? ›

But in reality, Noom intentionally created a difficult cancellation process, so users who were unable to withdraw in time were instantly back charged for months of service. This “automatic enrollment trap” led to more than 1,000 complaints with the Better Business Bureau and ultimately the lawsuit. See Third Am. Compl.

What is the controversy with Noom? ›

Some Noom users say the app's daily weigh-ins and calorie-tracking system are 'toxic' and triggered disordered eating. The weight-loss app Noom built its brand on acknowledging that "diets don't work." Former users say they were drawn to Noom's message, but the app triggered disordered eating.

What are the complaints about Noom? ›

Everything is a bit glitchy, even writing to cancel my subscription/ask for a refund was glitching so I had to ****** to find their customer service line. They claim they can't refund the charges but can offer a store credit...for what? I don't like how this program works and I don't like how the app works.

What happened to Noom? ›

The company says its app has helped “millions of people lose weight,” but a spokesperson declined to share the size of its current active user base. Noom has laid off hundreds of employees since last April, and in October announced that it was seeking a CEO replacement for co-founder Saeju Jeong.

What is the gimmick with Noom? ›

Noom's diet recommendations are restrictive and hierarchical in a way that promotes disordered eating. When a user downloads Noom's app, it onboards them by asking them how much weight they want to lose and how fast they want to lose it.

What is the downside of Noom? ›

While Noom may be a good fit for some people, there are a few downsides. Most notably, Noom doesn't offer in-person interactions with coaches or other Noom members. The cost, concerns around low calorie goals, and potential pitfalls of food tracking are among other downsides of the program.

What do doctors say about Noom? ›

However, while Noom can serve you in the short term by helping you change your eating habits and practice mindful eating, some experts recommend against using weight-loss apps like Noom. "A strict diet protocol, or labeling foods in any way, isn't a healthy practice.

Are the Noom coaches real people? ›

The Backbone of the Noom Approach

One of the most important additions we made was that of our human coaching team. Through research and conversations with our Noomers, we realized that intervention and human connection would be key parts of helping people live healthier lives.

What's the secret with Noom? ›

Noom uses a system that separates "good" and "bad" foods by assigning colors to different edible treats. Each color signifies how much or how little you should eat to stay on track toward your goals.

How can I get my money back from Noom? ›

Please reach out to Noom Support at hmsupport@noom.com and ask for a refund.

Is it hard to cancel Noom subscription? ›

How to Cancel a Noom Subscription on Android. Open the Noom app. Go to the blue chat box in the top right corner. Send a message to your 'Goal Specialist' stating your desire to cancel.

Is Noom worth it in 2024? ›

Weight loss apps can be a structured and supportive way for people to learn how to make positive changes to their nutrition and exercise habits, but they aren't for everyone. We found that Noom does a great job promoting accountability, offering guidance and education, and encouraging healthy habits.

What is the Noom lawsuit? ›

NEW YORK, Feb 14 (Reuters) - Noom Inc reached a $62 million settlement of a lawsuit accusing the weight loss app provider of tricking customers into signing up for "risk-free" trial periods only to force them into automatic, costly renewals that were difficult to cancel.

What is an alternative to Noom? ›

1. Vegetable Bouillon Powder. If you are looking for a salty nutritional yeast substitute to add to a soup recipe, try using plant-based vegetable bouillon powder. You'll get the umami kick that nooch would bring to the recipe, without having to use nutritional yeast.

Who competes with Noom? ›

The best overall Noom alternative is Therap Services. Other similar apps like Noom are Intergy, Clarify Health, BlueNote Communicator, and Trella Health: Marketscape.

Is Noom backed by science? ›

Evidence-Based Science

We have more than 40 peer-reviewed scientific articles that inform users, practitioners, scientists, and the public about how our methods work and how effective they are, as well as provide more general observational information that contributes to science.

Will Noom give you your money back? ›

We'll issue a refund for your initial subscription or add-on charges provided that you reach out to Support within 14 days of the charge date.

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