Sellers of the Snuggie nicked $8M for deceptive marketing


ASSOCIATED PRESS: The Federal Trade Commission hit Allstar Marketing for $8 million over misleading cost information.

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ASSOCIATED PRESS: The Federal Trade Commission hit Allstar Marketing for $8 million over misleading cost information.

The FTC said costumers were led to believe they would be getting two $19.95 products for less than $10 each, but actually paid $35.85 when a processing and handling fee was applied. Allstar will pay $7.5 million to the FTC to create a fund for customer refunds. The other $500,000 will be paid to the New York attorney general’s office for penalties, costs and fees. Allstar said it has already made changes to its business to make costs easier to understand.

“While we have always believed our processes complied with the law, we are proud to have successfully worked with the FTC and the NY AG to improve them and set new standards for transparency,” Jennifer De Marco, general counsel at Allstar, said in a written statement.

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