Snuggie vendor agrees to $8m settlement over deceptive practices
Infomercial vendor Allstar Marketing Group, which sells items including the Snuggie and the Perfect Brownie Pan, has agreed to an $8m settlement with the New York Attorney General’s office and the Federal Trade Commission over claims that it used deceptive marketing promotions.
The company will be required to clarify its advertising as well as ordering process as part of the deal it struck.
New York attorney general Eric Schneiderman said in a statement: "This agreement returns money to thousands of consumers in New York and across the nation who believed they were buying items at the price advertised on television, but ended up with extra merchandise and hidden fees they didn't bargain for.”
However, the company said in a release that the processes for ordering have always been “clearly disclosed to the consumer.”
Many consumers have filed complaints about the company’s practices. An investigation found that consumers often faced undisclosed processing and handling fees and misleading upselling offers.