Life Alert Will Refund Its Customers
American company Life Alert Emergency Response Inc. will refund its customers after being investigated by the New York Attorney General.
NY AG Investigation
Letitia James, New York’s Attorney General, has investigated Life Alert due to reports that it is violating consumer protection laws.
The attorney general asserts that the company has failed to inform customers who availed their services to cancel their contract.
The company’s action has allowed customers to incur massive costs because they thought they could not cancel their contracts.
Aside from this, the New York attorney general also attests that the company has refused to grant contract cancellation requests by its customers.
Life Alert Emergency Response
Life alert provides services that help elderly individuals reach emergency response teams.
The company utilizes pendants or small bracelets, which its customers can use to call for help in emergencies.
When individuals purchase a contract with Life Alert, they must sign up for the emergency response service for 36 months. The service will allow them to be monitored during the said period.
In exchange for the contract, customers will have to pay a monthly fee for the service. Aside from this, they also have to pay an installation and programming fee for the device.
According to reports, the amount paid by customers per month can vary from $50 to $90, depending on the type of service they have availed. Customers will also need to shoulder the shipping and upfront fees.
In total, it is estimated that customers will pay up to $2,000 to $3,400 for the 36-month contract.
NY AG Findings
According to the investigation conducted by the New York attorney general, customers who sign up for Life Alert’s emergency response service can cancel their contract up until seven days after they sign.
She adds that the law requires the company to verbally and explicitly inform their customers that they can cancel within this period.
She also declares that the seven-day cancellation period will not begin until the company has informed the customer about it.
Attorney Letitia James’ office contends that the company did not inform their customers about the cancellation policy from 2014 until 2020, violating their consumer’s rights.
She estimates that over 16,000 individuals living in New York were affected by the issue.
Life Alert and the New York Attorney General have agreed to refund affected customers whose rights were violated.
The refund terms state that Life Alert will notify its current New York customers of their rights to cancel their contract.
It is estimated that over 5,000 customers residing in New York will be able to cancel their contracts with the company by being made aware of the cancellation policy.
The agreed terms also declare that the company will refund customers whose cancellation requests were rejected.
Life Alert will also pay out $750,000 to the city of New York as a penalty for violating the law.
Editor’s Note On Life Alert Emergency Services To Refund Its Customers Over Violating Contract Laws:
This article is published to inform you of the latest refund Life Alert will give to its customers whose contracts were not canceled.
Case Name & No.: NA
Products/Services: Life Alert emergency response contract
Allegations: The company violated consumer laws by failing to inform customers of their rights to cancel the contract
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