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A settlement has been reached between Maryland Attorney General Anthony G. Brown’s Consumer Protection Division and online retailer AdoreMe, Inc., resolving claims that the company misled customers about enrollment in its VIP membership program. Under the agreement, AdoreMe will issue refunds to Maryland consumers who were charged recurring fees without clear consent or knowledge, and will implement stronger consumer protections moving forward.
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The Attorney General’s investigation found that AdoreMe promoted discounted prices for lingerie, but failed to adequately inform customers that accepting these discounts would automatically enroll them in a VIP membership. This program charged $39.95 monthly, crediting the amount toward future purchases. Consumers who attempted to cancel often faced difficulties, prompting regulatory action. The settlement ensures that customers who never used their VIP benefits will be refunded all payments made.
Additionally, AdoreMe will provide refunds to consumers with high credit balances and take steps to prevent such practices in the future. The company must now clearly disclose all terms before billing, obtain affirmative consent for membership, send monthly billing notices, and simplify the cancellation process. A new online mechanism for cancellation will be made available, and accounts with more than twelve months of unused credits will automatically stop being charged.
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Refunds will be issued to Maryland consumers over the next two to three months. Those with inactive memberships will receive payments equal to their unused funds. Active members will be contacted within one to two months with an option to claim up to a year’s worth of refunds. AdoreMe has also agreed to pay $250,000 to the Attorney General’s Office as part of the settlement.
Article by multiple RFHC contributors, based upon information from the Office of the Maryland Attorney General
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