$7M COVERuP
Snuggie maker pays for buy-one-get-one-‘fee’ scam
THE BUSINESS behind the Snuggie is paying $7.2 million in refunds because ads for the sleeved blankets were cloaked in deception.
Allstar Marketing Group’s settlement with the Federal Trade Commission covers misleading TV commercials that have run since 1999.
Allstar’s “buy one, get one free” deals failed to reveal additional costs, according to court documents.
Customers believed $19.95 bought them two Snuggies. But an unexpected $7.95 processing and handling fee was tacked on for each item, raising the cost to $35.85.
The commercials never disclosed the handling fee would apply to each item in the order.
Customers couldn’t order just one item under the promotion.
“Because the ordering process was confusing, some customers also were charged for more products than they wanted,” the FTC said in a release.
“The televised commercials for all of its products adhere to a nearly identical script.”
The FTC is now mailing out 218,254 refund checks totaling more than $7 million, which is funded by Allstar.
The average check about $33.
The settlement doesn’t just apply to Snuggies. It also compensates some customers of other “as seen on TV”-type items, including the Perfect Bacon Bowl, Magic Mesh Door, Perfect Brownie Pan, Cat’s Meow and Roto Punch products.
Consumers should receive refund checks this month, and they must be cashed within 60 days or they will become void.
Anyone with questions regarding the refund may call (877) 982-1294 for more information. will be