(RALEIGH) Attorney General Josh Stein announced a $2.35 million multistate settlement with AdoreMe, Inc., a lingerie retailer that primarily sells its merchandise online. Approximately 27,789 North Carolinians who currently have unused store credits are eligible for refunds ranging from $39.95 to $479.90, totaling more than $700,000 in all. In addition, the Attorney General’s office will receive $79,832.63. The settlement resolves claims that the company deceptively marketed its VIP Membership Program and then made it difficult for consumers to cancel their membership.
“I’m pleased that more than 25,000 North Carolinians will be eligible to receive more than $700,000 in refunds from AdoreMe,” said Attorney General Josh Stein. “Companies have a responsibility to be fair and transparent with their customers so that people know what they’re signing on for.”
AdoreMe offered customers discounted pricing if they enrolled in AdoreMe’s VIP Membership Program. Once enrolled in the program, people were charged as much as $39.95 a month, unless they made a purchase from AdoreMe or logged into their AdoreMe accounts to “skip” the charge before the sixth day of each month. The monthly charges accrued in their accounts as store credits, which were supposed to be used on future purchases.
AdoreMe is now required to notify all customers with active VIP Memberships that they can obtain a refund of any unused store credits. In addition, AdoreMe has agreed to make certain changes to its business practices and is prohibited from engaging in any misconduct.
Attorney General Stein is joined in this settlement by the Attorneys General of Alabama, Arkansas, Connecticut, DC, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Washington, and Wisconsin.
A copy of the settlement is available here.
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