The company behind the Snuggie, which was a wearable fleece blanket first sold on TV, is being forced to refund its customers $7.2 million.
The Federal Trade Commission says that Allstar Market Group misrepresented the product and deceived customers with its ads.
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The product was advertised for "just $19.95" and promised two Snuggies for less than $10 each. However, the ads did not disclose a $7.95 handling fee that would be applied to each Snuggie. The final price for 2 Snuggies was almost $36.
More than 200,000 customers can expect to receive a refund. The average payout is $33 per customer, according to AZ Central.
The Snuggie, despite not being the first wearable blanket, became super popular because of social media. It was introduced at the same time that businesses began seriously marketing products via Twitter, Facebook and YouTube.
Celebrity endorsements by big names like Oprah Winfrey and Ellen also helped its popularity.
Customers should receive their checks this month. For more information, call 1-877-982-1294.
