Those who use small print and hidden fees to inflate charges to unwitting consumers must be held accountable.”Īccording to the FTC’s complaint, since at least 1999, Allstar, based in Hawthorne, New York, has been in the direct marketing business, using television commercials to sell its products, many of which are familiar to consumers such as Magic Mesh, Cat’s Meow, Roto Punch, Perfect Tortilla, Forever Comfy, and Snuggies. “The settlement also brings much needed reforms to a major firm in the direct marketing industry. “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,” Attorney General Eric T. “Working with the New York Attorney General, we’ll return millions of dollars to consumers that Allstar collected in undisclosed fees.” That includes processing fees, handling fees, and any other fees they think up,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Marketers must clearly disclose all costs. In addition to the $7.5 million paid to the FTC, Allstar will pay $500,000 to the Attorney General’s Office for penalties, costs, and fees to settle that action.
The FTC’s settlement with Allstar Marketing Group, LLC, was reached alongside actions by the New York State Office of the Attorney General, which is announcing a separate state case today. About the FTC Show/hide About the FTC menu itemsĪ direct marketing company selling “as-seen-on-TV” type products such as Snuggies and the Magic Mesh door cover has agreed to pay $7.5 million to the Federal Trade Commission for consumer restitution to settle FTC charges in connection with its deceptive “buy-one-get-one-free” promotions.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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