But wait, there’s more — hidden charges!
A company that hawks “As Seen on TV” wares like the Snuggie and Perfect Bacon Bowl will fork over $8 million to settle charges that it duped customers, sources said Thursday.
Allstar Marketing Group promised “buy one, get one free” deals, but charged customers nearly twice what they expected with “deceptive” processing and handling fees, the Federal Trade Commission says.
“This agreement returns money to thousands of consumers in New York 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 state Attorney General Eric Schneiderman, who worked with the FTC on the settlement.
Allstar, of Hawthorne in Westchester County, sold products — including the Forever Comfy Cushion, Magic Mesh curtain and Cat’s Meow cat toy — by touting the deal on infomercials, according to the complaint filed by the FTC in Illinois on Wednesday.
“Call now! That’s right, you get two for $19.95. That’s less than $10 each,” a narrator declared in an ad, according to court papers.
But customers who went for the “double offer” ended up paying $35.85.
Some buyers were sold more than they asked for. One tried to buy two $19.95 Perfect Brownie Pans but was charged $105 for six, Schneiderman said.
On Thursday, Allstar agreed to pay $7.5 million to the FTC for customer refunds. Another $500,000 will be paid to the AG for penalties, costs and fees.
Duped New York customers should contact the AG.
Under the settlement, Allstar must also change its advertising and ordering.
“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,” said Jennifer De Marco, general counsel at Allstar.