NORTH DAKOTA (KXNET) — On Friday, Attorney General Drew Wrigley announced that he, and 31 other states, reached a $2.35 million multistate settlement with AdoreMe, Inc. (Adore Me).
According to a press release, Adore Me is a lingerie retailer that sells its merchandise online.
This settlement is resolving claims that the company markets its VIP Membership Program to people deceptively, and makes it difficult to cancel the membership.
North Dakota’s share of the settlement is approximately $35,000.
The VIP Membership Program with Adore Me allows people to get discounted pricing on items, once they’re enrolled, they are charged $39.95 a month unless they make a purchase or “skip” the charge before the sixth of each month. The monthly charges collect in their accounts in the form of store credit, which can be used on purchases in the future.
This settlement is alleging that Adore Me:
- Failed to disclose the terms of its VIP Membership Program and the monthly charge amount properly.
- Misrepresented that he discovered prices are time-limited.
- Made it difficult for people to cancel their VIP Membership.
- Improperly forfeited people’s VIP Membership store credits when canceled.
“Adore Me wrongfully took money from North Dakota consumers by enrolling and trapping the consumers in VIP membership programs and monthly payments they did not know about and did not want,” Wrigley said.
With these terms, Adore Me is required to notify anyone with an active VIP Membership of the ability to get a refund of any unused store credits. Adore Me also agreed to make changes to its business practices and is not allowed to engage in any of the alleged misconduct in the future.
Wrigley noted that his office is holding Adore Me accountable by making them correct their business practices and give transparency about the terms of the VIP memberships.
“Any North Dakota consumers who are enrolled in Adore Me’s VIP membership should watch for a notice from Adore Me regarding obtaining a refund of any unused store credits accumulated through monthly charges by Adore Me,” said Wrigley.