Shapermint Subscription Scheme: Lawsuit Claims Company Traps Customers in Automatic Payments

Shapermint, a popular marketplace for shapewear and swimwear, is making money from its customers through more than just its clothing sales, signing them up for membership subscriptions and charging them monthly fees without their knowledge, according to a new lawsuit.

Customers are accusing the company of tacking the $4.99 monthly subscription onto their purchases, both online and instore, “surreptitiously and without concern” and without their consent, accusing Shapermint of violating consumer protection laws. 

Customers allege deceptive subscription practices

Shapermint customers Francis Fernandez and Cecille Nyugen are behind the proposed class action lawsuit filed in California against Favorite World, LLC, which does business as Shapermint. 

Fernandez, a Los Angeles resident, and Nyguen, from Washington, were both signed up to Shapermints $4.99 subscription plan after they had bought Shapermint products without being made aware they were being enrolled, they say in the lawsuit. 

The pair allege the company violates California’s Automatic Renewal law by enrolling consumers in automatic renewal or continuous service membership subscriptions “without providing the clear and conspicuous disclosures mandated by California law.”

The company fails to get consent from customers and lacks “requisite clear and conspicuous disclosures” that are required by law, the pair alleges, and it also makes the subscription “exceedingly difficult and unnecessarily confusing” to cancel. 

“Defendant is engaged in a pattern and practice of exploiting consumers by failing to obtain consumers consent before enrolling them and shape them and club membership and their company monthly fee,” the lawsuit alleges.

What is an Automatic Renewal Law?

Automatic Renewal Laws have proliferated in the United States over the last ten years. The laws are designed to protect consumers from exactly what Fernandez and Nyugen are accusing Shapermint of: a company signing consumers up to automatic renewal or continuous service without their consent. 

States with the laws include California, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Louisiana, New York, New Mexico, North Carolina, Oregon, Vermont, and Virginia. California has some of the strongest consumer protections in its law. 

According to the American Bar Association, the state tightened its existing rules in 2022 by saying businesses must provide a notice before a trial period ends telling the consumer the term will automatically renew and how to cancel. 

Business owners must follow a set of rules and include provisions in their automatic renewal policies that include explaining:

• A subscription will continue until cancellation
• How cancellation policy works
• All recurring charges that will be charged 
• The length of the automatic renewal term
• A reminder of any short term promotion’s expiration

People in state’s without Automatic Renewal laws still have protection from such schemes through the federal Unordered Merchandise Act, which prohibits charging for goods sent to a customer unsolicited, and the Restore Online Shoppers Confidence Act.

What to do if you get caught in an auto renewal scheme?

With the proliferation of online shopping and confusing options for accepting terms and agreements, more shoppers are finding themselves caught up in unwanted subscriptions. If you are one of them, there are some easy steps you can take:

• Read the terms of the contract and follow the directions for cancelation
• Find how long you have to cancel before a contract renews automatically
• Write an email and letter saying you want to cancel the contract, effective immediately, and attach your contact details. You do not need to state why you want to cancel. Send by certified mail so the date is recorded
• Stay on top of the status of your request and call the company’s customer service department 

If you have any issues, or believe you were misled, legal action could be the next step. 

Fernandez and Nyugen want to represent Shapermint consumers nationwide in this proposed class action lawsuit, in order to recover damages and ensure the company stops engaging in what they call a deceptive practice. 

The plaintiff and proposed class is represented by Sophia Goren Gold, Jeffrey D. Kaliel, and Amanda J. Rosenberg of Kalielgold PLLC; and Christopher D. Jennings, Tyler B. Ewigleben, Winston Hudson, and Laura Edmondson of The Johnson Firm.

The Shapermint deceptive subscription proposed class action lawsuit is Ferndandez et al. v. Favorite World, LLC d/b/a Shapermint, Case No. 8:24-cv-00714-JWH-DFM in the Superior Court of the State of California for the County of Orange.