Snuggie maker pays $8 million to settle fraud charges

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NEW YORK (AP) — The company behind Snuggie, Perfect Bacon Bowl and other "As Seen on TV" products has agreed to pay $8 million to settle charges that it deceived customers.

The Federal Trade Commission says Allstar Marketing Group promised customers buy-one-get-one free promotions, but they were still charged for the items in the form of high shipping costs.

Allstar will pay $7.5 million to the FTC to create a fund that will be used for customer refunds. The other $500,000 will be paid to the New York attorney general's office for penalties, costs and fees.

Allstar, based in Hawthorne, New York, says it has already made changes to its business to make costs easier to understand.

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  • janette

    this happened to me….by the time shipping and handleing charges were added I was actually paying for the “free” item…I did not complete the ttransaction…but WAS not able to order just one item….what a scam!

  • Azure

    This is one of the worst products ever. They are a fall hazard if you try to get up and walk in them. Better just to put on warm, comfy pj tops and bottoms if you ask me! And many of these as seen on tv products are just that – scams! WEN is another one to entirely avoid!