Attorney General Anthony G. Brown of Maryland recently announced a settlement with online lingerie retailer AdoreMe, Inc. following an investigation into deceptive marketing practices. The settlement resolves allegations that AdoreMe failed to adequately disclose the terms of its VIP membership program, resulting in consumers being charged monthly fees after accepting discounts. This investigation shed light on the company’s practice of requiring customers to enroll in the VIP program to receive discounted lingerie purchases.
As part of the settlement, AdoreMe will continue offering its VIP program but is now obligated to secure explicit consent from consumers and transparently disclose the program’s terms before billing them. Additionally, the company must provide clearer monthly billing notices, easier access to membership terms, and a straightforward online cancellation process. The settlement also mandates prompt processing of cancellation requests and timely refunds, with automatic cessation of billing for accounts with credit balances exceeding twelve months.
Attorney General Brown emphasized the importance of consumer transparency in online transactions and the prevention of hidden fees. The settlement not only ensures refunds for affected Maryland consumers but also establishes guidelines to prevent future deceptive practices. Refunds will be issued to Maryland consumers who enrolled in the VIP program but did not utilize it, with the process expected to be completed within the next two to three months. Active members will be contacted by AdoreMe to facilitate refunds for up to one year of payments.
Consumers seeking information about the restitution program can contact the Consumer Protection Division at 410-528-8862. In addition to consumer restitution, AdoreMe will pay a $250,000 settlement fee to the Attorney General’s Office. The settlement signifies a commitment to safeguarding consumer rights and promoting transparency in online transactions.
This settlement underscores the evolving landscape of e-commerce and the growing importance of regulatory oversight to protect consumers from deceptive practices. As online shopping continues to thrive, ensuring transparency and accountability in marketing strategies is crucial to maintaining consumer trust. The AdoreMe case serves as a reminder of the need for businesses to uphold ethical standards and provide clear, upfront information to customers.
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While the settlement brings closure to the investigation, it also highlights the ongoing efforts to enforce consumer protection laws and hold companies accountable for misleading practices. By setting clear guidelines and ensuring compliance, regulatory authorities play a vital role in safeguarding consumer interests in the digital marketplace. Moving forward, the AdoreMe case serves as a precedent for promoting transparency and accountability in online retail practices.
