New York Attorney General Letitia James has reached a $375,000 settlement with 1-800-Flowers following an investigation into the company’s automatically renewing subscription service.
The state Attorney General’s Office said 1-800-Flowers failed to clearly disclose the terms of its “Celebrations Passport” program, which provides free shipping and eliminates service charges for an annual fee ranging from $14.99 to $29.99.
The subscription is offered through several company brands, including 1-800-Flowers.com, Harry & David, Cheryl’s Cookies, Shari’s Berries, The Popcorn Factory and 1-800-Baskets.com.
According to the Attorney General’s Office, subscription terms were displayed only in fine print, linked terms and conditions or pop-up boxes between February 2021 and June 2022. Investigators also found that the company failed to provide required post-purchase acknowledgments or adequate notice before subscriptions renewed.
Officials said some customers did not realize they had enrolled in an annual subscription and were repeatedly charged for benefits they did not use.
Consumer complaints submitted to the company, the Attorney General’s Office, the Federal Trade Commission and the Better Business Bureau also raised concerns about difficulty canceling subscriptions and obtaining refunds.
Under the settlement, 1-800-Flowers must pay $375,000 in penalties and provide refunds to eligible New York customers who filed complaints. The company must also offer restitution to eligible consumers nationwide who purchased the Celebrations Passport but did not use its benefits.
The company will be required to clearly disclose its subscription terms, obtain informed consent before enrolling customers, provide cancellation instructions after purchases and notify subscribers before automatic renewals.
“Companies that trick consumers into signing up for recurring subscriptions are breaking the law and costing New Yorkers their hard-earned money,” James said.
New York law requires businesses to clearly disclose automatic-renewal terms, including subscription length, renewal policies and cancellation procedures. Companies must also receive affirmative consent from customers and provide an easy way to cancel.
