The Snuggie has raked in millions, but now the company behind famous "as seen on TV" fleece blanket is being forced to pay its customers $7.2 million back in refunds.
The Federal Trade Commission (FTC) alleged that Allstar Marketing Group, the New York-based company behind the infomercial product, misrepresented and deceived customers with its ads.
The settlement cites unauthorized charges and failure to adequately disclose material terms of the offer, under the Telemarketing and Consumer Fraud and Abuse Prevention Act.
According to court documents, the FTC said Allstar's "buy-one-get-one-free" promotion failed to disclose additional charges to customers for processing and handling.
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