New York Attorney General Letitia James said on Nov. 2 that her office secured a $500,000 settlement from Bloomberg for failing to properly disclose subscription terms. Some subscribers whose prices rose sharply after auto-renewal may receive refunds. New York law requires businesses to clearly disclose renewals and how to cancel.
New York Attorney General Letitia James announced on Monday, Nov. 2, that her office secured a $500,000 settlement from Bloomberg L.P. for failing to properly disclose subscription terms. Under the settlement, Bloomberg must change its subscription practices and issue refunds to eligible subscribers, including those who filed complaints and those who canceled after an auto-renewal.
According to the attorney general's investigation, Bloomberg.com subscription prices rose sharply once initial promotional periods ended. In some cases, a subscription that cost $1.99 a month for the first three months rose to $39.99 a month, and a student subscription at $99 a year automatically increased to $415 after graduation. Some annual subscribers paid more than $100 extra when their subscriptions renewed.
The attorney general's office said Bloomberg did not clearly disclose the price increases and auto-renewal, and did not adequately provide the post-purchase confirmation or advance renewal notice required by law. Since 2021, its website and chatbot required users to go through multiple pages to reach the cancellation menu, and it did not disclose that subscribers could also cancel by email or phone until 2023. Although it told customers at sign-up that they could "cancel anytime," it did not refund annual subscription fees.
Who Is Eligible for Refunds, and the Legal Standard
Eligible for refunds are subscribers who filed complaints with Bloomberg, the Federal Trade Commission (FTC), the Better Business Bureau (BBB), a nonprofit consumer organization, or the New York Attorney General's Office, as well as subscribers who canceled after a price increase caused by auto-renewal. Subscribers nationwide are included, not just New York residents.
New York law requires subscription businesses to clearly disclose the minimum subscription period, whether the subscription auto-renews and how to cancel, and to obtain consent to auto-renewal. They must also send a post-purchase confirmation and provide an easy way to cancel. Going forward, Bloomberg must obtain express consent and notify subscribers in advance of renewals.
James has secured a series of subscription-related settlements this year. This one follows a $375,000 settlement with 1-800-Flowers in July and a $400,000 settlement with online pharmacy Thirty Madison in August. Subscription fee complaints can be filed through the attorney general's consumer complaint portal (ag.ny.gov).