Mental health care provider Cerebral to pay $740G over cancellation issues
Attorney General Letitia James said online mental health care provider Cerebral often “took days” to process cancellation requests. Credit: AP/Ted Shaffrey
An online mental health care provider has agreed to a $740,000 settlement, including more than a half-million dollars in restitution to some 16,500 New York customers, for maintaining “a long and burdensome” cancellation process, New York State Attorney General Letitia James announced Thursday.
In a statement, the attorney general’s office said an investigation found the Delaware-based provider Cerebral often “took days” to process cancellation requests — and even “charged patients for services never provided.”
“Making New Yorkers withstand stressful and extended delays to cancel a subscription for mental health coverage is unacceptable,” James said in a statement Thursday. “It is illegal and unfair to make consumers spend extra time or jump through hoops to try to cancel a subscription they no longer need. The law is clear that companies must make it easy and simple to end a subscription and my office will continue to hold them to that standard.”
The attorney general’s office said Cerebral subscriptions “provided consumers with access to virtual appointments” with a variety of providers, including “licensed therapists, counselors, coaches, and individuals who are duly licensed and can prescribe medication.” James said her office opened the investigation after numerous complaints from consumers who said they could not cancel their subscriptions, despite repeated efforts.
The investigation found that Cerebral “informed subscribers they could cancel by email,” but then made them take “a number of additional steps.”
Among the steps Cerebral mandated were “a multi-question survey” before subscribers had their requests processed, James said.
In an emailed statement, Cerebral said: “We are pleased to report that Cerebral has reached a settlement with the NYAG to close its investigation into Cerebral’s business practices. The Company’s continued commitment to evolving and improving its compliance practices, and our clinician-led leadership team’s unwavering commitment to patient safety and privacy have been integral to our reaching this resolution with the NYAG. Cerebral has been transparent and cooperative throughout this process and remains committed to providing excellent care for our valued patients while upholding the highest standards in full compliance with all applicable laws.”
The settlement, “in which Cerebral has not admitted any wrongdoing,” allows the company “to move forward with a continued focus on our mission of building a new era of high-quality mental healthcare,” the statement says.
The attorney general’s office said Cerebral had the ability to process the subscription cancellations “with the click of a button,” but often took up to 72 hours to finalize the cancellations — and, at times, it took “a week or more.”
During that time, James said, Cerebral contacted subscribers with “multiple” retention offers, trying to convince them “not to cancel.”
And, the attorney general’s office said, when the delays straddled a billing date, Cerebral then charged customers for an additional month of service.
The investigation also revealed that Cerebral “illegally directed” employees to manipulate online reviews, posting fake reviews and “upvoting” positive reviews while “downvoting” negative ones.
In its statement, the attorney general’s office also said that employees were told to contact customers — and ask them to remove negative reviews, while suggesting those negative reviews might “deter” those in need of mental health care from seeking help.
The settlement includes $200,000 in penalties and $540,162 in restitution to 16,552 New York subscribers to Cerebral services, James said.
It follows a similar settlement last week with SiriusXM, after James filed a lawsuit against the service saying it had trapped consumers in unwanted subscriptions.
An online mental health care provider has agreed to a $740,000 settlement, including more than a half-million dollars in restitution to some 16,500 New York customers, for maintaining “a long and burdensome” cancellation process, New York State Attorney General Letitia James announced Thursday.
In a statement, the attorney general’s office said an investigation found the Delaware-based provider Cerebral often “took days” to process cancellation requests — and even “charged patients for services never provided.”
“Making New Yorkers withstand stressful and extended delays to cancel a subscription for mental health coverage is unacceptable,” James said in a statement Thursday. “It is illegal and unfair to make consumers spend extra time or jump through hoops to try to cancel a subscription they no longer need. The law is clear that companies must make it easy and simple to end a subscription and my office will continue to hold them to that standard.”
The attorney general’s office said Cerebral subscriptions “provided consumers with access to virtual appointments” with a variety of providers, including “licensed therapists, counselors, coaches, and individuals who are duly licensed and can prescribe medication.” James said her office opened the investigation after numerous complaints from consumers who said they could not cancel their subscriptions, despite repeated efforts.
The investigation found that Cerebral “informed subscribers they could cancel by email,” but then made them take “a number of additional steps.”
Among the steps Cerebral mandated were “a multi-question survey” before subscribers had their requests processed, James said.
In an emailed statement, Cerebral said: “We are pleased to report that Cerebral has reached a settlement with the NYAG to close its investigation into Cerebral’s business practices. The Company’s continued commitment to evolving and improving its compliance practices, and our clinician-led leadership team’s unwavering commitment to patient safety and privacy have been integral to our reaching this resolution with the NYAG. Cerebral has been transparent and cooperative throughout this process and remains committed to providing excellent care for our valued patients while upholding the highest standards in full compliance with all applicable laws.”
The settlement, “in which Cerebral has not admitted any wrongdoing,” allows the company “to move forward with a continued focus on our mission of building a new era of high-quality mental healthcare,” the statement says.
The attorney general’s office said Cerebral had the ability to process the subscription cancellations “with the click of a button,” but often took up to 72 hours to finalize the cancellations — and, at times, it took “a week or more.”
During that time, James said, Cerebral contacted subscribers with “multiple” retention offers, trying to convince them “not to cancel.”
And, the attorney general’s office said, when the delays straddled a billing date, Cerebral then charged customers for an additional month of service.
The investigation also revealed that Cerebral “illegally directed” employees to manipulate online reviews, posting fake reviews and “upvoting” positive reviews while “downvoting” negative ones.
In its statement, the attorney general’s office also said that employees were told to contact customers — and ask them to remove negative reviews, while suggesting those negative reviews might “deter” those in need of mental health care from seeking help.
The settlement includes $200,000 in penalties and $540,162 in restitution to 16,552 New York subscribers to Cerebral services, James said.
It follows a similar settlement last week with SiriusXM, after James filed a lawsuit against the service saying it had trapped consumers in unwanted subscriptions.
John Valenti, a reporter at Newsday since 1981, has been honored nationally by the Associated Press and Society of the Silurians for investigative, enterprise and breaking news reporting, as well as column writing, and is the author of “Swee'pea,” a book about former New York playground basketball star Lloyd Daniels. Valenti is featured in the Emmy Award-winning ESPN 30-for-30 film “Big Shot.”
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