The Federal Trade Commission (FTC) has announced that more than 40,000 consumers will receive refunds totaling over $5 million due to a settlement with Cerebral, Inc., an online mental health service provider. The FTC alleged that Cerebral engaged in deceptive practices by continuing to charge consumers despite their requests to cancel subscriptions.

According to the FTC, Cerebral required clients to navigate a complicated and lengthy process to cancel their subscriptions. Additionally, the company allegedly continued to bill consumers while delaying their cancellation requests, despite assurances that they could 'cancel anytime.' Furthermore, Cerebral was accused of disclosing sensitive personal health information to third parties for advertising purposes and violating the Restore Online Shoppers’ Confidence Act by failing to clearly disclose all material terms of their cancellation policies before charging consumers.

An independent refund administrator, Epiq Systems, is responsible for distributing the refunds. Payments will be sent to 40,249 affected consumers, with most receiving checks in the mail that should be cashed within 90 days. Consumers who did not have an address on file will receive payments via PayPal, which must be redeemed within 30 days. The refunds are available to those who submitted cancellation requests on or before May 2022 but were still charged by Cerebral.

Consumers with questions regarding their payments or eligibility can contact the independent refund administrator. The FTC emphasizes that it never requires individuals to pay money or provide account information to receive a refund. In 2024 alone, FTC actions have resulted in over $339 million in refunds to consumers nationwide.