FTC To Refund $7M to Consumers who Bought BOGO Snuggies, Magic Mesh

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The Federal Trade Commission has announced that it will be mailing more than 218,000 refund checks worth a total of more than $7.2 million to consumers who bought Snuggies, the Magic Mesh Door and other products deceptively marketed as “buy-one-get-one-free” from Allstar Marketing Group.

Allstar, which is based in Hawthorne, N.Y., reportedly sells “as seen on TV” products such as Magic Mesh, Cat’s Meow, Roto Punch, Perfect Tortilla, Forever Comfy, and Snuggies.

According to the FTC, Allstar began using direct marketing television commercials, many of which pitched a “buy-one-get-one-free” offer to entice consumers to purchase its products.

The FTC lawsuit points to a Magic Mesh commercial, which offers the product for a cost of $19.95, but promises to double the offer if the consumer pays separate processing and handling fees. The narrator in the commercial reassures the consumers: “that’s right, you get two Magic Mesh curtains for $19.95, that’s less than $10 each.”

However, Allstar allegedly did not disclose all of the costs associated with its BOGO offers. Further, the ordering process was reportedly confusing and some consumers ended up being charged for more products than they sought to purchase.

According to the FTC lawsuit, the Magic Mesh commercial’s narrator fails to disclose that Allstar charges $7.95 for processing and handling each product. The narrator also reportedly fails to disclose that consumers are unable to decline the “free” Magic Mesh product, resulting in consumers paying $15.90 in shipping and handling fees, and in some cases receiving a second Magic Mesh product even though they only wanted to purchase one.

At the end of the television commercials, consumers are given the option of calling a toll-free number or visiting a product-specific website to make purchase the product. When ordering by phone, consumers are immediately instructed to enter their name, address and debit or credit card number before the customer indicates how many products they wish to purchase.

“Despite neither disclosing quantity nor price, however, Defendant immediately charges consumers who enter their billing information for at least one ‘set,’ which includes the buy-one-get-one-free promotion, of the main product being advertised,” the FTC lawsuit said.

The FTC also alleges the online ordering process is deceptive and misleading. The offer details are reportedly included in fine print at the bottom of the page, which requires most consumers to scroll down to view. When consumers click the Order Now button, they are reportedly presented with a series of upsell offers. Allstar fails to adequately disclose to consumers that they have already placed an order after they submit their billing information, leading many consumers to re-submit their order so that they end up ordering twice the intended amount of the product.

The agency accused Allstar of violating the FTC Act, which also enforces the Telemarketing Act.

The average FTC refund check will average $33.14.

If you receive an FTC refund check, you should cash it within 60 days or it will become void.

If you have questions about the misleading BOGO offer cases, contact the refund administrator at 1-877-982-1294.

The Allstar Buy-One-Get-One-Free Lawsuit is Federal Trade Commission v. Allstar Marketing Group LLC, Case No. 1:15-cv-01945, in the U.S. District Court for the Northern District of Illinois, Eastern Division.

UPDATE: May 2019, the FTC mailed a second round of settlement checks totaling $2.1 million.