Facts

PlushCare is a service that connects consumers to a doctor via an online video visit. Patients book an appointment on plushcare.com or through PlushCare's app and after inputting their banking information may then virtually visit the doctor. Sarah Robbins, who had booked an appointment with a PlushCare doctor and obtained services, filed suit against PlushCare for violations of several consumer protection laws, including the Automatic Renewal Law.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant illegally charged monthly or yearly subscription service fees without consumers' authorization, knowledge or consent. Without disclosing the terms of their subscription services, defendant would enroll consumers into membership plans that automatically renewed indefinitely without obtaining consumers' express consent or written authorization. Moreover, defendant failed to disclose its automatic renewal terms nor did it provide a simple means for cancellation.

DEFENDANT'S CONTENTIONS: Defendant denied the allegations and any wrongdoing, asserting that its autorenewal practices were lawful at all times.

Result

The case settled for $3.7 million, allowing customers to receive payment of an estimated average of $65 to $130, depending on the number of submitted claims. Though defendant was not legally obligated to make certain changes to its website, it did agree as part of the settlement and to improve user experience, to more clearly define its autorenewal practices, and obtain affirmative consent to the automatic renewal terms on its website.