Some Snuggie owners to get settlement checks in mail
All Star Marketing has agreed to a $7.2 million payout after a buy-one-get-one deal on the Snuggie left many still paying out of pocket. Refunds will also be issued for the Magic Mesh Door along with other "as-seen-on-TV" products.
The settlement was for $8 million, $500,000 of which went to pay legal fees.
Around 218,000 customers will get a refund, with the average check worth $33.
The Federal Trade Commission sued Allstar, alleging misleading advertising since 1999.
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No small part of the Snuggie's success was attributed to Allstar's commercials that weren't afraid of being made fun of. "But they were able to laugh at themselves, and I think the American consumer sensed they were in on the joke, too".
Allstar forced consumers to purchase two of its products, then charged them processing and handling fees that all but cancelled out their savings, Today reported.
"This agreement returns money to thousands of consumers in NY 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", said Attorney General Eric T. Schneiderman.
"Because the ordering process was confusing, some customers also were charged for more products than they wanted", FTC officials said in a media release.
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