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Optavia Weight Loss Products Automatic Renewals California Class Action

California has a fairly specific law on the subject of automatic renewals. The complaint for this class action alleges that Optavia, LLC and its parent company, Medifast, Inc., violated this law with an automatic renewal plan for Optavia weight loss products sold to consumers. According to the complaint, the companies did not provide the disclosures required and did not obtain sufficient consent to the automatic renewals.

The class for this action is all Optavia/Medifast customers in California who were automatically enrolled in Optavia Premier and were charged at least one renewal fee by the companies, within the applicable statute of limitations period.

Optavia is a multi-level marketing company that offers weight loss products, like packaged meals. Subscriptions bring in 92% of the companies’ total revenue, the complaint claims.

The complaint says, “According to [Optavia and Medifast], the average Optavia client spends thirty times more money on diet products compared to industry benchmarks. More than 57% of Optavia’s customers get auto-enrolled for at least one renewal fee and nearly 50% of customers get charged four or more times.” The complaint alleges that these high statistics are due to the illegal automatic renewal plan, called Optavia Premier.

The plaintiff in this case, Jamie Zeller, is a citizen of California who says she was enrolled in the Optavia Premier program without her consent in August 2021 and charged for recurring shipments of Octavia products.

The California Automatic Renewal Law (ARL) is meant to stop companies from enrolling consumers in automatic renewal programs unless they, the companies, meet strict requirements for pre- and post-purchase disclosures.

Before the consumer makes the purchase, the complaint alleges, the law requires that the company “present the automatic renewal offer terms or continuous service offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled…” The terms must be in visual proximity or, if the offer is made by voice, in proximity of time, to the request for the customer’s consent to the offer.

The law also specifies that specific offer terms must be presented here, the complaint claims, including such things as, “That the subscription or purchasing agreement will continue until the consumer cancels[,]”a “description of the cancellation policy that applies to the offer[,]” and the “minimum purchase obligation, if any.”

After the purchase, the complaint claims, the law requires the company to provide “acknowledgement that includes the automatic renewal offer terms or continuous service offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the customer.” This acknowledgement must also offer a “cost-effective, timely, and easy-to-use mechanism for cancellation.”

Among other things, the complaint alleges that the Optavia website enrolls consumers in the plan using a prechecked box that consumers have to notice and uncheck if they do not want to be enrolled. The law requires affirmative consent, and not this affirmative opt-out mechanism.

It also claims that the subscription cancellation process is difficult and confusing.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Optavia Weight Loss Products Automatic Renewals California Complaint

April 1, 2022

California has a fairly specific law on the subject of automatic renewals. The complaint for this class action alleges that Optavia, LLC and its parent company, Medifast, Inc., violated this law with an automatic renewal plan for Optavia weight loss products sold to consumers. According to the complaint, the companies did not provide the disclosures required and did not obtain sufficient consent to the automatic renewals.

Optavia Weight Loss Products Automatic Renewals California Complaint

Case Event History

Optavia Weight Loss Products Automatic Renewals California Complaint

April 1, 2022

California has a fairly specific law on the subject of automatic renewals. The complaint for this class action alleges that Optavia, LLC and its parent company, Medifast, Inc., violated this law with an automatic renewal plan for Optavia weight loss products sold to consumers. According to the complaint, the companies did not provide the disclosures required and did not obtain sufficient consent to the automatic renewals.

Optavia Weight Loss Products Automatic Renewals California Complaint
Tags: Automatic Subscription Renewal or Continuous Service Agreement, Deceptive Advertising, Fraud