- A coalition of 32 AGs reached a settlement with online underwear retailer Adore Me, Inc. to resolve allegations that the company deceptively marketed its subscription membership program and made it intentionally difficult for consumers to cancel memberships once they were enrolled.
- The AGs allege that Adore Me maintained a “VIP Membership Program” in which consumers were charged $39.95 per month for store credits that could be used for future purchases. Consumers were automatically opted into the program at checkout, which meant that they had to affirmatively opt-out to avoid joining. When consumers tried to cancel their memberships, Adore Me allegedly made the cancellation process long and difficult, and forced consumers to forfeit the store credits they had accrued as a requirement of cancellation.
- Under the terms of the settlement, Adore Me must pay $2.35 million to the investigating jurisdictions and must also provide refunds to harmed consumers. The company is also required to reform its business practices to ensure that fees, costs, and terms of membership programs are all clearly disclosed to consumers.