Snuggie may have to cough up R85.6 million to customers
WASHINGTON - Snuggie buyers can expect compensation after being deceived with buy-one-get-one-free offers from the wearable blanket company, a new lawsuit alleges.
The two for 'just $19.95' (R238) deal was promoted through infomercials, where the company failed to inform prospects about extra handling fees.
Buyers were charged $7.95 (R95) in handling for each item - nearly doubling the total price for both, the suit by the Federal Trade Commission said, ABC News reports.
Marketing company, Allstar Products Group, is now being ordered to pay consumers back $7.2 million (R85.6 million)
The lawsuit further alleges Snuggie offered different products, all with the nearly the same description.
A screen grab from the snuggiestore.com. site.
'The televised commercials for all of its products adhere to a nearly identical script,' the FTC said in the suit.
Snuggie buyers can expect their refund checks in the mail within days. Checks will be sent out this week.
ABC reports that more than 218,000 Snuggie buyers had been scammed in the fake deal.
Phone request for comment by DailyMail.com to Allstar Products Group was not returned late Thursday.
The Snuggie, which made its infomercial debut in 2008, became an instant success, selling 25 million products by the end 2010, according to The New York Times.
The Times reported in 2010 the company 'found success by laughing along with the ridicule'.