A Brief Investigation Gets to the Bottom of Alleged Underwear Subscription Deception

Cozen O'Connor
Contact
LinkedIn
Facebook
X
Send
Embed

Cozen O'Connor

  • A coalition of 32 AGs reached a settlement with online underwear retailer Adore Me, Inc. to resolve allegations that the company deceptively marketed its subscription membership program and made it intentionally difficult for consumers to cancel memberships once they were enrolled.
  • The AGs allege that Adore Me maintained a “VIP Membership Program” in which consumers were charged $39.95 per month for store credits that could be used for future purchases. Consumers were automatically opted into the program at checkout, which meant that they had to affirmatively opt-out to avoid joining. When consumers tried to cancel their memberships, Adore Me allegedly made the cancellation process long and difficult, and forced consumers to forfeit the store credits they had accrued as a requirement of cancellation.
  • Under the terms of the settlement, Adore Me must pay $2.35 million to the investigating jurisdictions and must also provide refunds to harmed consumers. The company is also required to reform its business practices to ensure that fees, costs, and terms of membership programs are all clearly disclosed to consumers.
Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Written by:

Cozen O'Connor
Cozen O'Connor
Contact
more
less

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign Up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide