Tennessee Attorney General Jonathan Skrmetti recently announced he and 31 other state attorneys general have secured a $2.35 million payout from a multistate settlement with an online lingerie retailer.
The group of attorneys general sued Adore Me, Inc. (Adore Me) over claims that the company “deceptively marketed its VIP Membership Program to consumers and then made it difficult for consumers to cancel their memberships,” according to Skrmetti’s office.
The company’s VIP Membership Program, which costs $39.95 a month, offers consumers discounted pricing on online items. Those enrolled in the program must make a purchase from the company or log into their online accounts before the sixth day of each month in order to “skip” the charge.
Whenever the consumer pays the monthly charge for the VIP program, store credits accumulate in their accounts, which can then be used to make future purchases.
The multistate settlement alleges that the company “failed to properly disclose to consumers the terms of its VIP Membership program and the amount of the monthly charge by misrepresenting that Adore Me’s discounted prices are time limited,” according to Skrmetti’s office.
The settlement also alleges that the company made it difficult for consumers to cancel their VIP Memberships, and “improperly forfeited consumers’ VIP Membership store credits upon cancellation.”
In addition to the $2.35 million payout, AdoreMe.com is required to notify all consumers with active VIP Memberships of their ability to obtain a refund of any unused store credits under the terms of the multistate settlement.
The company has also agreed to make changes to its business practices and is “prohibited from engaging in any of the prior misconduct alleged in the settlement agreement,” Skrmetti’s office notes.
Each state will receive upwards of $70,000 from the settlement for enforcement of future consumer protection actions.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Jonathan Skrmetti” by Tennessee Attorney General. Background Photo “Courtroom” by Jackie Hope.
