Few things feel as warm and comforting as a Snuggie, the body-length blanket made out of fleece or nylon — but unexpected cash comes awfully close!
This week, the Federal Trade Commission began sending people who bought Snuggies refund checks in connection with a three-year-old settlement.
According to the FTC, $7.2 million will be dispersed to 218,254 people who bought the products, which were “deceptively marketed as buy-one-get-one-free,” the agency announced this week.
Thousands of Snuggie customers to get refunds. Find out how much here
Allstar Marketing Group LLC, which marketed the Snuggie and other products, used advertisements that didn't disclose all costs to customers, the FTC alleged in the 2015 lawsuit. "Because the ordering process was confusing, some customers also were charged for more products than they wanted," the agency said in a written statement.
Allstar allegedly continued the practice for years, up until a court order outlining the settlement barred the company from using those particular advertising methods.
As laid out in the court order, this is how the FTC says Allstar duped customers with its ads:
In a recent Magic Mesh commercial, after the narrator describes the uses for
Magic Mesh, the product is said to be available for "just $19.95." And, for "call[ing] now,"
Defendant promises consumers that it will "double the offer, just pay separate processing and
handling fees." In referring to this "deal," the narrator says, "that's right, you get two Magic Mesh
curtains for $19.95, that's less than $10 each."
During the Magic Mesh commercial, the narrator never discloses that Allstar charges
$7.95 for "processing and handling" for each Magic Mesh. Nor does the narrator disclose that it
is not possible to decline the second "free" Magic Mesh, meaning that the minimum "processing
and handling" fee that Defendant charges is actually $15.90. In reality, Defendant's undisclosed
processing and handling fees nearly double the advertised cost of the Magic Mesh from $19.95 to
$35.85. Defendant offers many of its other products in a similar manner.
Aside from Snuggies and the Magic Mesh Door, the settlement encompasses other “as-seen-on-TV” type products sold by the company, like the Cat’s Meow, Perfect Bacon Bowl and Roto Punch. But how much money can customers expect to receive in the mail?
How much ‘Snuggie money’ will you get back?
The FTC says that each customer will receive a check averaging $33.14. Those checks must be cashed within 60 days or they become void. Consumers who have questions about the settlement should call 1-877-982-1294.