Michigan Attorney General Dana Nessel announced a $2.35 million multistate?settlement with AdoreMe, Inc. (Adore Me), a lingerie retailer that primarily sells its merchandise online. Michigan will receive $77,526.92 from the total payment amount. 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 offers consumers discounted pricing if they enroll in Adore Me’s VIP Membership Program. Once enrolled in the program, consumers are charged $39.95 a month, unless they make a purchase from Adore Me before the sixth day of each month, or log into their Adore Me accounts to “skip” the charge. The monthly charges accrue in the consumers’ accounts in the form of store credits, which can 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 and that it:
1. Misrepresented that Adore Me’s discounted prices are time-limited.
2. Made it difficult for consumers to cancel their VIP Memberships.
3. Improperly forfeited consumers’ VIP Membership store credits upon cancellation.
“Deceptions of this kind are becoming all too common in the online marketplace,” Nessel said. “It’s always wise to carefully read the payment terms and all other purchase terms when joining a membership program. But in this case, Adore Me’s terms omitted critical information about the program and its charges. This settlement should stand as a warning to companies that use deceptive online sales practices: If you charge consumers without their knowledge and consent, or for ongoing purchases they no longer want, you will be held accountable.”
Under the terms of the settlement, Adore Me is required to notify all consumers with active VIP Memberships of their ability to obtain a refund of any unused store credits. In addition, Adore Me has agreed to make certain changes to its business practices and is prohibited from engaging in any of the prior misconduct alleged in the settlement agreement.
The settlement was negotiated by the District of Columbia, Pennsylvania, and Texas, and was joined by Alabama, Arkansas, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, Washington, and Wisconsin.
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