1-800-Flowers to pay New York $375,000 in penalties over subscription policies

Customers of Long Island-based 1-800-Flowers.com could receive refunds after the New York Attorney General’s Office said Wednesday the company agreed to pay $375,000 to settle complaints over its subscription policies.

Attorney General Letitia James said an investigation found the company failed to make certain disclosures related to its Celebrations Passport subscription service that allows consumers to avoid shipping and service fees.

James said the company, based in Jericho, also failed to issue subscribers an acknowledgment required by New York law and didn’t notify subscribers before their automatic renewal date. The service is priced between $14.99 and $29.99 annually, depending on promotions, according to the attorney general's office.

The investigation covered the company’s policies between February 2021 and December 2022.

"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.

1-800 Flowers did not respond to a request for comment on Wednesday afternoon.

1-800-Flowers neither admitted nor denied the findings of the attorney general’s investigation as part of the settlement, which stated the company agreed to the penalties to avoid the time and costs associated with litigation.

The company issued disclosures about its renewal policy but these terms were buried in fine print, links to separate webpages with terms and conditions or in pop-out boxes on its website, the attorney general’s office said.

State law requires companies make clear disclosures about subscription policies to consumers, receive their consent for automatic renewals and send a post-purchase acknowledgment.

Gov. Kathy Hochul last year signed legislation to make it easier to cancel online subscriptions by requiring businesses to notify consumers of upcoming renewals.

Companies often set extra hurdles, such as requiring customers to access multiple links, to call customer support or to send a written request to cancel, said Kimberly Palmer, a personal finance expert at NerdWallet.

She advises consumers to set calendar reminders to cancel subscriptions before they renew and to reach out to the nonprofit Better Business Bureau or their state attorney general’s office when they experience issues.

"Automatically recurring subscription plans often capitalize on people forgetting they signed up for something," she said.

The attorney general’s office has reached settlements with companies including Uber, Equinox and SiriusXM in recent years over their subscription and cancellation policies.  

Some consumers in New York and nationwide will be eligible for refunds if they meet certain 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 to certain organizations. Those agencies are the attorney general’s office, the Better Business Bureau or the Federal Trade Commission.

New Yorkers can get 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 didn’t use the free shipping or no service fee benefits during either year beyond their first purchase with the membership.

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.

By Jonathan LaMantia

jonathan.lamantia@newsday.com@jonlamantia

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.