AdoreMe, Inc., the online lingerie company that extensively advertises on Facebook, is involved in a federal lawsuit. Adore Me offers lingerie for women and advertises that its first “VIP set” is only $19.95 and includes free shipping. For anyone that’s shopped for women’s undergarments, it seems like quite a deal. However, the FTC filed a federal lawsuit against AdoreMe, Inc., alleging that the company deceived consumers into signing up for a monthly delivery program and made it hard for consumers to cancel.
Allegations Made by the FTC
In addition to the FTC alleging that Adore Me made it hard for consumers to cancel their accounts after signing them up for a monthly auto-shipment of lingerie, the FTC stated that the company also took away “anytime” credits that consumers collected between May 2015 and May 2016. When consumers would cancel or forgo a shipment, they would charge their customers and issue a credit to them that they could allegedly use at another time. However, Adore Me is accused of taking away those credits and, in essence, took money from consumers without providing them with a product. Although Adore Me dropped this practice in May 2016, the FTC stated that the company hasn’t fully refunded their affected customers.
In addition to this misrepresentation of their credit policy, the FTC accused Adore Me of understaffing its customer service department which made the cancellation process harder than it needed to be.
Adore me Prohibited from Misrepresenting Their Services
Because of this federal lawsuit, Adore Me is prohibited from misrepresenting how their service works, including the ability to charge a customer and allowing them to use that “credit” at a later date, stating that this is a free or discounted price trial, and must clearly explain how their customers can avoid being charged in the future. They must also include disclosures with order confirmations that also explains how cancellations may be completed and they may not include any offers to upsell or offer additional products or services. Adore Me must also refund $1.3 million in unused credits.