More than 40,000 consumers are set to receive refunds following a settlement between the Federal Trade Commission (FTC) and Cerebral, Inc., an online mental health service provider. The FTC alleged that Cerebral billed customers despite their requests to cancel subscriptions.
The allegations against Cerebral included requiring clients to go through a complex cancellation process, continuing charges during delays in processing cancellations, disclosing sensitive personal health information for advertising purposes, and violating the Restore Online Shoppers’ Confidence Act by not clearly disclosing cancellation terms before charging consumers.
Epiq Systems, an independent refund administrator, is distributing over $5 million to 40,249 affected consumers. Most recipients will receive checks that should be cashed within 90 days. Those without an address on file will get PayPal payments to be redeemed within 30 days.
Refunds are directed at consumers who attempted to cancel their subscriptions on or before May 2022 but were still charged by Cerebral. For inquiries about payments or eligibility, consumers can contact the refund administrator at 1-888-884-6036 or info@CerebralRefund.com. The FTC assures that no payment or account information is required for refunds.
In 2024 alone, FTC actions resulted in over $339 million in consumer refunds nationwide. The Commission's interactive dashboards provide detailed refund data across states.
The Federal Trade Commission aims to promote competition and protect consumers. It advises against any demands for money or promises of prizes from the FTC. More information on consumer protection is available at consumer.ftc.gov, and fraud reports can be submitted at ReportFraud.ftc.gov.
