Tags: snuggie | settlement | refunds

Snuggie Settlement Sending $7.2M in Refunds to Buyers 

Snuggie Settlement Sending $7.2M in Refunds to Buyers 
People who bought Snuggies from misleading TV ads could be getting money back after a settlement. (Anatol1973/Dreamstime.com)

By    |   Wednesday, 14 March 2018 05:05 PM

A Snuggie settlement will give $7.2 million in refunds to consumers because of misleading TV ads about the pricing of products, specifically buy one, get one free promotions. 

The refunds will come out of a payment by Allstar Marketing Group to the Federal Trade Commission because it added too many undisclosed fees to its promotions for the Snuggie, a blanket with sleeves, and other products featured in its infomercials, including the Perfect Bacon Bowl, Magic Mesh Door, Perfect Brownie Pan, Cat’s Meow, and Roto Punch products, Today reported.

Allstar forced consumers to purchase two of its products, then charged them processing and handling fees that all but cancelled out their savings, Today reported. A 2015 FTC complaint against Allstar alleged that consumers who thought they were getting two Snuggies for $19.95 were actually charged as much as $35.85 for the products because of $7.95 per item processing and handling fees.

Consumers were not allowed to just order one item in these promotions, Today reported.

The complaint also said Allstar used automated answering systems that were confusing in an attempt to charge customers more by giving them multiple upsell offers and not letting them amend or review their order before processing. 

The average refund to customers was about $33, Today reported. 

Allstar’s attorney said the company believed it had always complied with the laws, but was “proud” to resolve the matter and improve itself, CNN Money reported.

Allstar has to pay a total of $8 million, with about $500,000 going to the Attorney General as a penalty, CNN Money reported. 

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A Snuggie settlement will give $7.2 million in refunds to consumers because of misleading TV ads about the pricing of products, specifically buy one, get one free promotions.
snuggie, settlement, refunds
261
2018-05-14
Wednesday, 14 March 2018 05:05 PM
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