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

By Kelly McCarthy

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.