Snuggie customers receive $7.2M in refunds thanks to FTC settlement

Snuggie customers receive $7.2M in refunds thanks to FTC settlement

The Snuggie has raked in millions, but now the company behind famous “as seen on TV” fleece blanket is being forced to pay its customers $7.2 million back in refunds.

The Federal Trade Commission (FTC) alleged that Allstar Marketing Group, the New York-based company behind the infomercial product, misrepresented and deceived customers with its ads.

According to court documents, the FTC said Allstar's “buy-one-get-one-free” promotion failed to disclose additional charges to customers for processing and handling.

The product is said to be available for “just $19.95” and promises consumers the offer will be doubled for “less than $10 each.” Those ads never disclosed that a $7.95 handling fee would be applied to each product in the order, which nearly doubled the total price to $35.85.

Read full article and learn more about deceptive advertising here.

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Disclaimer:  This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.

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