SACRAMENTO (CBS13) – If you’ve ever been wrapped in the warmth of a Snuggie-brand blanket with sleeves over the last 20 years, you could feel the warmth of something else: cash back. And it’s all because of deceptive business practices used by the company that marketed them, the FTC claims.
The direct marketing company behind the Snuggie, Allstar Marketing Group, LLC, deceptively sold the Snuggie and other as seen on TV-type products, including the Magic Mesh Door, as “buy-one-get-one-free”, but didn’t fully disclose the costs, according to the FTC. And because the buying process was confusing, some people who bought the product paid more products than they wanted.
“While the products varied, Allstar’s pitch often was the same—a “buy-one-get-one-free” offer that did not disclose all the costs,” the FTC said in a statement.
The court order settling the FTC’s charges barred Allstar from engaging in the allegedly illegal conduct and imposed a monetary judgment of $7.5 million to be paid back to affected consumers, with affected consumers receiving an average of $33.14 each.
Refund checks started going out on Monday, and consumers should receive their refund checks this month, the FTC says. Checks must be cashed within 60 days or they will become void.
Consumers should not be required to pay money or provide information to cash refund checks. Consumers who have questions should call the FTC 1-877-982-1294.