Allstar Marketing Group (“Allstar”), the company behind “As Seen on TV” products such as the Snuggie, Perfect Bacon Bowl, and Magic Mesh, has recently agreed to an $8 million dollar settlement with the Federal Trade Commission over their alleged illegal use of deceptive marketing and sales practices. The Federal Trade Commission’s investigation and subsequent settlement negotiations come in response to hundreds of consumer filed complaints pertaining to the company’s practices.
Customers who were drawn in by Allstar’s buy-one-get-one-free deals, or various other promotions, were later shocked to find out that they were charged undisclosed and exorbitant processing and handling fees. For instance, Magic Mesh commercials advertise that their product is available in a two-for-one deal for $19.95 total, which the commercial specifically notes is equivalent to less than $10 for each Magic Mesh. However, after purchaser fees are factored in for each individual unit, the package price actually comes out to $38.85, practically twice the advertised cost. Allstar failed to notify consumers of these large purchaser fees. Further, Allstar did not disclose that their Magic Mesh product was not available for individual sale and that customers had to order at least two units. Allstar was cited for additional deceptive practices, such as charging customers for more products than they attempted to purchase and for refusing to provide full refunds.
The plaintiff’s lawyers at Fitapelli & Schaffer, LLP have helped clients recover millions of dollars through the use of class action litigation. If you believe that you have fall victim to any deceptive marketing or sales practices, please contact us at (212) 300-0375 or visit our website at www.fslawfirm.com.