Noom settled a $56 million class action lawsuit in 2022 over its deceptive auto-renewal subscription practices, which trapped millions of users into ongoing charges despite claiming to offer a “risk-free” trial. Between May 2016 and October 2020, Noom advertised free trials to its weight-loss app but made cancellation deliberately difficult—users had to contact a virtual coach to cancel rather than simply using the app, their email, or the website. The settlement required Noom to overhaul its enrollment and cancellation practices, and class members could receive compensation ranging from $30 to $167 depending on the evidence of their claim.
This case became a landmark auto-renewal ruling because it exposed how Noom engineered cancellation barriers into its business model. A former senior software engineer at Noom testified that the company made cancellation “difficult by design” to maximize revenue from users who missed cancellation deadlines. The Better Business Bureau received over 1,000 complaints about misleading free trials and impossible-to-cancel subscriptions before the lawsuit moved forward.
Table of Contents
- What Was the Noom Auto-Renewal Trap That Led to This Class Action?
- The Hidden Business Strategy Behind Difficult Cancellation
- How the Class Action Lawsuit Developed and Reached Settlement
- Settlement Payouts and What Class Members Received
- What Business Practice Changes Did Noom Have to Make?
- How to File a Claim If You Were Charged by Noom During the Class Period
- What This Settlement Means for Future Subscription Services
What Was the Noom Auto-Renewal Trap That Led to This Class Action?
Noom’s core violation centered on false advertising of “risk-free” trials combined with systematic barriers to cancellation. When users signed up for the free trial, they were required to enter payment information and agree to auto-renewal terms, but the company made it nearly impossible to actually cancel before the trial ended. Unlike most apps that allow one-tap cancellation within the app or via email, Noom required users to reach out to a virtual coach—a real person—to cancel their subscription. Many users never connected with a coach, missed their trial window, and suddenly found $59 or more charged to their credit cards each month.
The trap worked because most people don’t aggressively pursue cancellation the moment they decide a service isn’t for them. They delay, thinking they’ll call later, and by the time they get around to it, the trial period has expired and auto-renewal has kicked in. Noom knew this human behavior and weaponized it. Users would then spend weeks trying to track down a coach or customer service representative, often giving up and paying multiple months of unwanted charges before finally succeeding in cancellation. The company’s business model depended on friction—it was engineered to convert hesitant free-trial users into paying customers through inertia rather than genuine choice.
The Hidden Business Strategy Behind Difficult Cancellation
During the lawsuit, Noom’s own internal witness—a former senior software engineer—admitted under oath that making cancellation difficult was intentional, not a product design oversight. His testimony revealed that Noom consciously chose to route cancellations through virtual coaches rather than offering simple digital options. The motivation was straightforward: difficult cancellations generated millions in revenue from people who intended to cancel but never managed to complete the process.
This wasn’t a bug; it was a feature. The Federal Trade Commission and state attorneys general had long warned companies about these dark patterns, but Noom pushed the limits anyway. The company wasn’t alone in this strategy—many subscription services (streaming platforms, meal kits, fitness apps) build cancellation friction into their systems—but Noom was particularly aggressive because its trial period was so short and its cancellation method so unusual. Most apps and websites allow cancellation in seconds; Noom required a conversation with a human being, which meant finding availability, scheduling a time, and potentially having an awkward conversation with someone trained to convince you to stay.
How the Class Action Lawsuit Developed and Reached Settlement
The lawsuit began as complaints accumulated with regulators and consumer groups. By the time a class action was certified, Noom faced overwhelming evidence of its deceptive practices. Multiple state attorneys general had received thousands of complaints, and the Better Business Bureau documented over 1,000 complaints specifically about misleading free trials and impossible cancellations.
Noom’s own marketing materials promised a “risk-free” trial while its actual cancellation process created significant risk and burden for consumers. On July 11, 2022, the federal court in Manhattan granted final approval to the $56 million settlement, which included $56 million in direct cash payments plus $6 million in Noom subscription credits that could be applied toward future service. The settlement covered everyone who enrolled in a Noom free trial between May 12, 2016 and October 6, 2020—a massive window that captured millions of users. Notably, this settlement was finalized even though Noom never admitted wrongdoing; like most class action settlements, the company agreed to pay and change its practices without conceding liability.
Settlement Payouts and What Class Members Received
The $56 million was divided into two subclasses based on the strength of evidence of each person’s claim. Subclass A members—those who could provide strong evidence that they were charged for the subscription (like receipts, billing statements, or credit card records)—received an average payout of $167 per person. Subclass B members—those who alleged they were harmed but couldn’t provide as much documentation—received an average payout of $30 per person.
These were averages, meaning some people received slightly more or less depending on the total number of valid claims and the specific evidence they submitted. Unlike settlements that only pay out a few million dollars, the $62 million total (cash plus credits) was substantial enough that most class members who submitted valid claims actually received meaningful compensation. If you spent three to six months trapped in Noom’s subscription before canceling, a $167 payout roughly covered several months of the service you never wanted. The credits were somewhat less valuable for most people, since they required returning to Noom, which was the service that had trapped them in the first place—so most class members preferred cash payments.
What Business Practice Changes Did Noom Have to Make?
The settlement required Noom to implement several specific reforms to prevent future deceptive practices. First, the company had to add an explicit checkbox that users must actively check before enrolling in auto-renewal, rather than having auto-renewal pre-selected or buried in dense terms and conditions. Second, Noom updated all pre-purchase disclosures to clearly explain the subscription cost, the trial period length, when auto-renewal would activate, and exactly how to cancel. Many users simply hadn’t understood these terms because they were hidden in tiny print or confusing language.
Third, Noom implemented automatic cancellation for users who became inactive in the app for more than 12 months after their trial ended—preventing phantom charges to people who lost interest in the service. Fourth, the company now sends a reminder email before the first auto-renewal charge for subscriptions with an initial trial period of three months or longer, giving users a final opportunity to cancel. Finally, Noom redesigned its website to offer easier cancellation options, including digital cancellation methods that don’t require scheduling a call with a virtual coach. These changes aligned Noom with the ROSCA (Restore Online Shoppers Confidence Act) regulations that require simple cancellation procedures.
How to File a Claim If You Were Charged by Noom During the Class Period
If you enrolled in a Noom free trial between May 12, 2016 and October 6, 2020 and were subsequently charged for a subscription you didn’t want, you may have been eligible for compensation from this settlement. The claim process typically required submitting evidence of your enrollment and charges—such as email confirmations of your free trial sign-up, credit card statements showing the charges, or screenshots of your Noom account. The claims administrator then reviewed whether you met the definition of Subclass A (strong evidence) or Subclass B (alleged harm with limited documentation) and calculated your payout accordingly.
For most settlements of this size, there’s a deadline to submit claims—usually one to two years after the settlement is finalized. If you’re reading this after the claim deadline has passed, you unfortunately cannot recover compensation from this particular settlement. However, if you believe you were a victim and the deadline has closed, you might still have options to pursue individual complaints with your state’s attorney general or file a chargeback dispute with your credit card company for unauthorized charges.
What This Settlement Means for Future Subscription Services
The Noom settlement became a template for how regulators and courts view deceptive auto-renewal schemes. After this case, the Federal Trade Commission became much more aggressive in pursuing subscription services with hidden charges and difficult cancellations. Several other fitness and wellness apps faced scrutiny or settlements in subsequent years, and many companies preemptively redesigned their cancellation processes to avoid becoming the next Noom.
This case also demonstrated that companies cannot hide behind the excuse of “it’s just a product design choice” when their design is specifically intended to obscure or obstruct cancellation. The Noom settlement signaled that regulators and courts would look at internal communications, engineer testimony, and behavioral data to determine whether friction was incidental or intentional. For consumers, this has meant easier cancellations and clearer disclosures across the subscription economy—a direct result of Noom’s settlement and the spotlight it placed on dark patterns.
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