AG Secures $2.35 Million Settlement with Adore Me Alleging ‘Deceptive’ VIP Membership Program

June 16, 2023 | Topic: Consumers

HARRISBURG– Attorney General Michelle Henry announced a $2.35 million multistate settlement with Adore Me, Inc., an online intimate apparel retailer. The settlement resolves claims that the company deceptively marketed its VIP Membership Program to consumers and made it difficult for consumers who purchased memberships to cancel.

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 they make a purchase or “skip” the charge before the fifth day of each month. The monthly charges accrue in the customer’s account in the form of store credits which can be used on future purchases.

The settlement alleges that Adore Me engaged in the following misconduct in violation of Pennsylvania’s consumer protection laws:

  • Failed to properly disclose the terms of the VIP Membership Program and the amount of the monthly charge to consumers;
  • Misrepresented that Adore Me’s discounted prices are time-limited;
  • Made it difficult for consumers to cancel their VIP Memberships from at least January 2012 to January 2016; and
  • Improperly eliminated consumers’ VIP Membership store credits upon cancellation from at least January 2012 to January 2016.

“Adore Me lured consumers into their VIP Membership Program without being up front about the automatic charges and membership terms,” Attorney General Henry said. “It is illegal for companies to subject customers to recurring subscription charges without giving clear notice and a reasonable way to cancel. Companies who advertise online should take this settlement as a warning: if you break the law, my office will find out and do whatever we can to get Pennsylvanians their money back.”

Under the terms of the settlement in the form of an Assurance of Voluntary Compliance, Adore Me is required to notify all consumers with active VIP Memberships of their ability to obtain a refund of any unused store credits. In addition, Adore Me 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. The $2.35 million will be paid to the states involved and will be used to further consumer protection investigations.

The settlement was negotiated by Pennsylvania, the District of Columbia, and Texas; Attorneys General from an additional 29 states joined the settlement. Senior Deputy Attorney General Amy Schulman handled this matter on behalf of Pennsylvania.

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