An online lingerie seller was forced to pay subscribers back for engaging in deceptive marketing, according North Carolina Attorney General Josh Stein.
Stein’s office announced a $2.35 million multistate settlement with AdoreMe, Inc.. The company is accused offering customers discounted pricing if they enrolled in AdoreMe’s VIP Membership Program. Subscribers were charged up to $39.95 a month, unless they made a purchase from AdoreMe or logged into their AdoreMe accounts to “skip” the charge before the sixth day of each month. Under the subscription model, the monthly charges accrued in their accounts as store credits. Those credits could be used on future purchases.
Stein’s office said the company deceptively marketed its VIP Membership Program and then made it difficult for consumers to cancel their membership.
Now, AdoreMe will pay out more than $700,000 to 27,789 North Carolinians who currently have unused store credits. Subscribers are eligible for refunds ranging from $39.95 to $479.90.
The company will also pay $79,832.63 to the Attorney General’s office, Stein’s office said. The settlement resolves claims that the company deceptively marketed its VIP Membership Program and then made it difficult for consumers to cancel their membership.
“I’m pleased that more than 25,000 North Carolinians will be eligible to receive more than $700,000 in refunds from AdoreMe,” said Attorney General Josh Stein. “Companies have a responsibility to be fair and transparent with their customers so that people know what they’re signing on for.”
As part of the settlement, AdoreMe is now required to notify all customers with active VIP Memberships that they can obtain a refund of any unused store credits. In addition, the Attorney General’s office said AdoreMe has agreed to make certain changes to its business practices and is prohibited from engaging in any misconduct.
Attorney General Stein was joined in the settlement by the Attorneys General of Alabama, Arkansas, Connecticut, DC, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Washington, and Wisconsin.
