Attorney General Charity Clark today announced a $2.35 million multistate settlement with Adore Me, Inc., a lingerie retailer that primarily sells its merchandise online. 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. The State of Vermont will receive approximately $34,000 from the settlement, and current members of the program will receive notices about how to obtain refunds of any unused credits in their accounts.
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, before the sixth day of each month, consumers make a purchase from Adore Me 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 states alleged that Adore Me failed to make clear disclosures to consumers of the terms of its VIP Membership program and the amount of the monthly charge. The states contended that Adore Me misrepresented its discounted prices as time-limited when they were not, that Adore Me made it difficult for consumers to cancel their VIP Memberships, and that when consumers did manage to cancel, Adore Me improperly refused to refund members any of their unspent credits.
Under the terms of the settlement, Adore Me has agreed to make certain changes to its business practices to ensure that the terms of its offers are clear and to enable consumers to cancel their accounts without hassle. Adore Me is also required to notify all consumers with active VIP Memberships of their ability to obtain a refund of any unused store credits.
Vermont consumers with questions about the settlement are encouraged to contact the Attorney General’s Consumer Assistance Program by calling 800-649-2424 or visiting ago.vermont.gov/cap.
Attorney General Clark was joined in the 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 Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Washington, and Wisconsin.
A copy of the settlement is available here.
CONTACT: Lauren Jandl, Chief of Staff, 802-828-3171