In the Matter of AdoreMe Inc.
Case summary
Vermont held AdoreMe liable for hidden subscriptions, misrepresenting time-limited discounts, and obstructing subscription cancellations.
Our analysis
Vermont has reached a settlement with lingerie retailer 'Adore Me' concerning allegations of deceptive advertising and billing practices. Adore Me offered consumers discounted pricing as part of its VIP Membership Program, which charged consumers $39.95 per month unless they made a purchase or chose to "skip" the charge by the sixth day of each month. The monthly charges accumulated as store credits for future use.
- The Attorney General contended that Adore Me failed to provide clear disclosures about the program's terms and the monthly charge, misrepresented time-limited discounts, made it challenging for consumers to cancel their VIP Memberships, and, when canceled, wrongfully refused to refund unspent credits to members. These practices were found to violate the Restore Online Shoppers’ Confidence Act (“ROSCA”), 15 U.S.C. § 8403, as they involved deceptive design patterns of, hidden subscriptions, the creation of fake urgency, and difficulties in the cancellation process.
Outcome
Adore Me reached a $2.35 million multistate settlement, with the State of Vermont set to receive approximately $34,000, and program members to be notified about refund options for unused credits in their accounts. As part of the settlement, Adore Me committed to implementing clearer offer terms and facilitating hassle-free account cancellations for consumers. Additionally, they will notify all active VIP Memberships about the opportunity to obtain refunds for any remaining store credits.
Parties
Vermont Attorney General and Adore Me, Inc