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Neighbor News

"As Seen On TV" Company To Pay $8 Million Dollar Settlement

FTC goes after company for alleged deceptive and misleading practices.

by Long Island Attorney Paul A. Lauto, Esq.

We have all seen the advertisements on television for the sale of products with seemingly miraculous capabilities all “for one low price.” The ads often continue with free additional items and “if you act now” you get two for the price of one (just pay shipping and handling). What they don’t tell you up front is that those “shipping and handling” or “processing” fees, are often so high that they effectively negate the financial loss of giving you one item for free.

It is exactly this type of deception, misrepresentation and/or fraud that has been alleged against Allstar Marketing, that has landed the company in hot water with the FTC. Allstar Marketing is a company that sells many of the popular “As Seen On TV” products such as the Snuggie. For those of you who are unfamiliar with this product, the Snuggie is in effect nothing more than a blanket with sleeves. Notwithstanding the Snuggie’s simplicity, it has astonishingly yielded millions of dollars and has somehow become a favorite product among Americans.

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