Chicago – Attorney General Kwame Raoul today announced a $2.35 million multistate settlement with AdoreMe, Inc., an online lingerie retailer. The settlement resolves claims that the company deceptively marketed its VIP Membership Program to consumers and made it difficult for consumers to cancel their memberships.
“I am pleased with the settlement to hold Adore Me, Inc. accountable for engaging in alleged deceptive marketing to its consumers,” Raoul said. “I will continue to work to ensure that Illinois consumers are treated fairly.”
AdoreMe offered consumers discounted pricing if they enrolled in its VIP Membership Program. Once enrolled in the program, consumers were charged $39.95 a month. Consumers could only avoid this automatic charge if they made a purchase before the sixth day of each month or logged into their AdoreMe accounts to decline the charge. The monthly charges accrued in the consumers’ accounts in the form of store credits, which could be used on future purchases.
The coalition’s settlement alleges that AdoreMe failed to properly disclose the terms of its VIP Membership program to consumers or make clear that AdoreMe’s discounted prices were time-limited. The settlement also alleges AdoreMe made it difficult for consumers to cancel their VIP Memberships and improperly forfeited consumers’ VIP Membership store credits upon cancellation.
Under the terms of the settlement, AdoreMe is required to notify all consumers with active VIP Memberships of their ability to obtain a refund of any unused store credits. In addition, AdoreMe has agreed to make changes to its business practices and is prohibited from engaging in any of the prior misconduct alleged in the settlement agreement.
Joining Attorney General Raoul in this settlement are attorneys general from Alabama, Arkansas, Connecticut, the District of Columbia, Florida, Georgia, Idaho, 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, Vermont, Washington and Wisconsin.
