Customers of Long Island-based 1-800-Flowers.com could receive refunds after the New York Attorney General’s Office announced Wednesday that the company agreed to pay $375,000 to settle complaints over its subscription policies. Attorney General Letitia James stated that an investigation found the company failed to make required disclosures regarding its Celebrations Passport subscription service, which allows consumers to avoid shipping and service fees.
Investigation Findings on Celebrations Passport Subscriptions
According to the attorney general’s office, the Jericho-based company failed to issue subscribers an acknowledgment required by New York law and did not notify subscribers before their automatic renewal date. The Celebrations Passport service is priced between $14.99 and $29.99 annually, depending on promotions. The state investigation covered company policies in place between February 2021 and December 2022.
State investigators found that while 1-800-Flowers issued disclosures about its renewal policy, these terms were buried in fine print, links to separate web pages with terms and conditions, or pop-out boxes on its website. State law requires companies to make clear disclosures about subscription policies, receive consumer consent for automatic renewals, and send a post-purchase acknowledgment. Gov. Kathy Hochul signed legislation last year to make it easier to cancel online subscriptions by requiring businesses to notify consumers of upcoming renewals.
“Companies that trick consumers into signing up for recurring subscriptions are breaking the law and costing New Yorkers their hard-earned money,” Letitia James said in a statement.
Did You Know? In addition to its signature floral business, 1-800-Flowers operates several e-commerce brands including Harry & David, Shari’s Berries, and The Popcorn Factory.
Settlement Details and Consumer Refund Criteria
As part of the settlement, 1-800-Flowers neither admitted nor denied the findings of the attorney general’s investigation, agreeing to the penalties to avoid the time and costs associated with litigation. The company did not respond to a request for comment. Following the announcement, shares of 1-800-Flowers jumped before the market close to $4.21, rising 0.2% on Wednesday after previously trading as low as $4.07, before settling down 7.6% to $3.89 on Thursday.
Eligible consumers in New York and nationwide can receive refunds based on specific criteria. New Yorkers who bought a membership through the company’s website between Feb. 9, 2021, and June 26, 2022, or through its mobile app between Feb. 9, 2021, and Dec. 21, 2022, can get a full refund of their most recent fee if they also filed a complaint with the attorney general’s office, the Better Business Bureau, or the Federal Trade Commission.
Furthermore, New Yorkers can secure a $20 refund if they purchased using the website or mobile app between February 2021 and December 2022, had their membership automatically renewed for a second year, and did not use the free shipping or no-service-fee benefits during either year beyond their first purchase. Other U.S. consumers may be eligible for $20 refunds if they enrolled in the program during certain dates, are not members of a California class-action lawsuit tied to the policy, and never used the free shipping benefits.
Broader Context on Recurring Subscriptions
Companies frequently set extra hurdles, such as requiring customers to access multiple links, call customer support, or send a written request to cancel, according to Kimberly Palmer, a personal finance expert at NerdWallet. “Automatically recurring subscription plans often capitalize on people forgetting they signed up for something,” she said.
Palmer advised consumers to set calendar reminders to cancel subscriptions before renewal dates and to reach out to the nonprofit Better Business Bureau or state attorney general offices when encountering cancellation issues. The New York Attorney General’s Office has previously reached subscription-related settlements with companies including Uber, Equinox, and SiriusXM.
Frequently Asked Questions
What caused the investigation into 1-800-Flowers?
The New York Attorney General’s Office investigated the company’s Celebrations Passport subscription service and found that it failed to make proper disclosures, failed to issue required subscriber acknowledgments, and did not notify subscribers before automatic renewals between February 2021 and December 2022.
Who is eligible for a full refund?
New Yorkers who purchased a membership via the website between Feb. 9, 2021, and June 26, 2022, or via the mobile app between Feb. 9, 2021, and Dec. 21, 2022, can receive a full refund of their most recent fee if they also filed a complaint with the attorney general’s office, the Better Business Bureau, or the Federal Trade Commission.
How much did 1-800-Flowers agree to pay to settle the complaints?
The company agreed to pay $375,000 to settle the investigation, though it neither admitted nor denied the findings.
Have you ever encountered unexpected renewal charges from an online subscription service?