1-800-Flowers settles over hidden subscription fees

(USA TODAY Network via Reuters Connect) – New York Attorney General Letitia James has secured a $375,000 settlement with 1-800-Flowers.com over allegations the company misled customers into enrolling in automatically renewing paid subscriptions.

Under the agreement, the company must pay civil penalties, change its subscription practices and provide refunds to eligible customers.

According to the attorney general’s office, an investigation found that 1-800-Flowers failed to clearly disclose the terms of its “Celebrations Passport” subscription program, which offers free shipping and waived service fees for an annual fee ranging from $14.99 to $29.99.

The investigation found that between February 2021 and June 2022:

• Subscription terms were disclosed only in fine print, linked terms and conditions or pop-up boxes.
• Customers were not provided with the subscription acknowledgment required under New York law.
• Subscribers were not given adequate notice before their memberships automatically renewed.

As a result, officials said some customers were charged recurring annual fees without realizing they had enrolled in the program.

The settlement covers subscriptions offered through several company brands, including 1-800-Flowers.com, Harry & David, Cheryl’s Cookies, Shari’s Berries, 1-800-Baskets.com and The Popcorn Factory.

The settlement requires 1-800-Flowers to provide refunds to eligible New York customers who filed complaints with the company, the New York Attorney General’s Office, the Federal Trade Commission or the Better Business Bureau.

The company also agreed to provide restitution to eligible customers nationwide who purchased a Celebrations Passport subscription but did not use its benefits.

In addition to paying $375,000 in penalties, 1-800-Flowers must:

• Clearly disclose subscription terms before enrollment.
• Obtain affirmative consent before enrolling customers in automatically renewing subscriptions.
• Provide customers with a post-purchase acknowledgment that includes cancellation information.
• Notify subscribers before their memberships automatically renew.

“Companies that trick consumers into signing up for recurring subscriptions are breaking the law and costing New Yorkers their hard-earned money,” James said in a statement.