Maker Of Snuggie Settles Deception Claims Against Them, To The Tune Of $8M

For those who do not know what a Snuggie is, it is best described as a blanket, but with sleeves. As you can tell from the photo to the right, that is what the Snuggie is described as, according to the box. It's also described as one-size fits all, and it is designed to keep you warm and let your hands remain free. You have probably seen the commercial for the Snuggie, if not recently, then probably in the past, as the commercial was very popular years ago. There is a video of one of the commercials to the right hand side, if you want to check it out.

Now that you know a little about the Snuggie, we'll tell you why they have been making recent news, and why they are paying out millions of dollars,

The seller of the Snuggie is a company called Allstar, and they don't just sell the Snuggie, which we have been tempted to buy in the past, but never got around to it, and All star has other products under their belt. Some of these products include the Perfect Bacon Bowl, as well as the Perfect Brownie Pan.

The Claims Against Allstar

Well, Allstar was accused of misleading people and overcharged people who decided to order the Snuggie, but the company did eventually settle the case, which they did recently. And they settled the claims for a massive amount of money. In matter of fact, it was to the tune of $8M.

As for who brought the claims against the maker of the Snuggie, that would be the NY attorney general. The attorney general's office launched an investigation and apparently Allstar ran a buy one get one free type of offer, but instead of being charged once for processing and handling, they were often charged two separate processing and handling fees. Basically, if customers checked out the offer and liked it and decided to take advantage of it, they'd be hit with two processing and handling fees, but Allstar allegedly didn't disclose that fact.

As for who will be getting the cash, $500,000 of the settlement will be going to the NY Attorney General, as it is for fees, charges and all that other good stuff. The other $7.5M will be going to the FTC, the Federal Trade Commission, and they will setup a fund and eventually customers will receive a refund. As for how many customers are expected to be refunded, we are not really sure, but if the settlement was for $8M, then we think there were many people who ended up buying the Snuggie.

The makers of the Snuggie shouldn't have ran such a promotion, knowing that customers would end up paying for shipping and processing for both Snuggies. Surely if the offer was buy one get one free, wouldn't both Snuggies, which aren't really that heavy, just be placed in one box and then shipped out. We don't know if that's what Allstar did with the Snuggies, but if it isn't, then they should have. Because if they did do this and charged the customer to process both of them, then that is not really right.

Anyway, we are sure Allstar has learnt their lesson and they will be more transparent about their shipping and handling fees and overall fees in general.

One thing is for sure though, and that is the Snuggie does look like a great product!