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article imageSnuggie maker settles deception claims for $8M

By Owen Weldon     Mar 6, 2015 in Business
The maker of the Snuggie, which is described as a blanket with sleeves, has settled deception claims against them for $8M.
Allstar, the seller of the Snuggie is settling claims of it misleading and overcharging customers. The claims were made by the Attorney General in New York.
According to an investigation conducted by the Attorney General, Allstar allegedly lured customers in with commercials that promoted a buy one, get one offer, but the company didn't disclose that they were going to be charged two separate processing and handling fees. In some cases, people paid almost double the cost of the offer.
Some people were sold more products than they intended to buy. One customer purchased two Perfect Brownie Pans for $19.95, but instead they received six of them. That customer was not able to get a refund
The New York AG's office will get $500,000 for costs, fees and penalties. The rest of the money is going to be put in a fund, created by the Federal Trade Commission, which will be for customer refunds.
As part of the settlement, Allstar has to stop using misleading or deceptive advertising. Allstar's attorney said the company was proud to have resolved the matter, and they will work to improve their practices.
More about snuggie, Settles, Deception
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