Snuggie seller settles charges that it deceived customers
NEW YORK (AP) — The company behind Snuggie, Perfect Bacon Bowl and other "As Seen on TV" products has agreed to pay $8 million to settle charges that it deceived customers.
The Federal Trade Commission says Allstar Marketing Group promised customers buy-one-get-one free promotions, but they were still charged for the items in the form of high shipping costs.
Allstar will pay $7.5 million to the FTC to create a fund that will be used for customer refunds. The other $500,000 will be paid to the New York attorney general's office for penalties, costs and fees.
Allstar, based in Hawthorne, New York, says it has already made changes to its business to make costs easier to understand.