Misleading Snuggie ads lead to $7.2 million settlement

FTC is mailing out 218,254 refund checks

Credit: Kathryn on Flickr via CC BY 2.0
Credit: Kathryn on Flickr via CC BY 2.0

ROANOKE, Va. – Allstar Marketing Group reached a settlement with the Federal Trade Commission over a deceptive promotion it ran for several of its products, including Snuggies, according to Today.

Customers believed they were paying just $19.95 for two products, but were then required to pay a surprise $7.95 processing and handling fee for each item. That made the total jump to $35.85, and customers could not order just one item under the promotion.

The settlement doesn't only apply to Snuggies, and compensates some customers of the Perfect Bacon Bowl, Magic Mesh Door, Perfect Brownie Pan, Cat's Meow and Roto Punch products. 

Allstar also allegedly attempted to charge customers more by using automated answering systems that employed confusing tactics.

The FTC is now mailing out 218,254 refund checks totaling more than $7.2 million. The average check will be about $33, and is funded by the money Allstar paid to the FTC.

Consumers with questions regarding the refund may call 877-982-1294 for more information.