BOSTON — Attorney General Andrea Joy Campbell today announced a multistate settlement with Adore Me, Inc., a lingerie retailer that primarily sells its merchandise online. Under the settlement, consumers with unused store credit will be allowed to obtain full refunds and Adore Me will pay $2.35 million to the participating states. The settlement resolves claims that the company deceptively marketed its VIP Membership Program to consumers and then made it difficult for consumers to cancel their memberships.
Adore Me enticed consumers to enroll in its VIP Membership Program. Once enrolled in the program, consumers were charged $39.95 a month, unless before the sixth day of each month, consumers made a purchase from Adore Me or logged into their accounts to “skip” the charge. The monthly charges accrued in the consumers’ accounts in the form of store credits, which could be used on future purchases.
The settlement alleges that Adore Me:
- failed to properly disclose to consumers the terms of its VIP Membership program and the amount of the monthly charge;
- misrepresented that Adore Me’s discounted prices were time-limited;
- made it difficult for consumers to cancel their VIP Memberships; and
- improperly forfeited consumers’ VIP Membership store credits upon cancellation.
Under the terms of the settlement, Adore Me is required to notify all consumers with outstanding balances of their ability to obtain a refund of any unused store credits by mid-July. In addition, Adore Me has agreed, among other conditions, to clearly and conspicuously disclose the terms, prices, and frequency of its recurring charges, to obtain consumers’ express informed consent to all recurring charges prior to enrollment, and to provide a simple online mechanism for consumers to cancel their memberships.
AG Campbell was joined in the settlement, which was led by the Attorneys General of the District of Columbia, Pennsylvania, and Texas, by 29 additional states.
This matter was handled by Assistant Attorney General Matthew Lashof-Sullivan of AG Campbell’s Consumer Protection Division.
Original source can be found here.
