WASHINGTON, D.C. — More than 40,000 consumers are set to receive refunds following a Federal Trade Commission (FTC) settlement with Cerebral, Inc., a digital mental health services provider accused of deceptive billing practices and unauthorized data disclosures. The refunds come amid allegations that the company failed to honor subscription cancellations and shared sensitive information without proper consent.
Key Allegations Against Cerebral
The FTC’s case against Cerebral highlighted several problematic practices. Among the most concerning allegations was the company’s handling of subscription cancellations. According to the FTC, Cerebral implemented a cumbersome, multi-step process for consumers attempting to cancel their subscriptions. This approach often took several days, during which the company allegedly continued to charge customers, despite its “cancel anytime” promise.
Additionally, Cerebral was accused of violating consumer privacy by disclosing sensitive personal health data to third parties for advertising purposes. The FTC also stated that the company failed to adequately disclose all material terms of its cancellation policies prior to billing customers, contravening the Restore Online Shoppers’ Confidence Act.
Refund Process
Refunds totaling more than $5 million are being distributed to 40,249 consumers as part of the settlement. Epiq Systems, an independent refund administrator, is overseeing the process. Consumers who submitted cancellation requests on or before May 2022 but were billed regardless are included in the refund initiative.
Most affected customers will receive their refunds via a mailed check, which must be cashed within 90 days as indicated. For those without a mailing address on file, refunds will be issued through PayPal, and recipients will need to redeem the payments within 30 days of receipt.
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