Adore Me Will Pay $1.3 Million for Deceiving Customers — The Fashion Law: The FTC set forth in its complaint that the e-commerce-only brand, which was founded in 2011 by Morgan Hermand-Waiche, ran afoul of federal law by misrepresenting its store credit policy, and suit. In particular, the government agency alleged that AdoreMe boasts a “VIP” membership program that costs $39.95 per month –�unless, in the first five days of each month, a member opts to “skip” that month.
The company’s website stated, “If you do not make a purchase or skip the month by the 5th, you’ll be charged a $39.95 store credit that can be used anytime to buy anything on AdoreMe.”
The FTC asserted in its complaint that, despite explicit promises that consumers would be able to use their store credits “anytime,” from at least May 2015 to May 2016, "Adore Me took unused credit amounts away from consumers who cancelled their memberships or initiated chargebacks with financial institutions to dispute their transactions with the company. Despite discontinuing this practice in May 2016, the company has not made full refunds to all affected consumers."
The company’s website stated, “If you do not make a purchase or skip the month by the 5th, you’ll be charged a $39.95 store credit that can be used anytime to buy anything on AdoreMe.”
The FTC asserted in its complaint that, despite explicit promises that consumers would be able to use their store credits “anytime,” from at least May 2015 to May 2016, "Adore Me took unused credit amounts away from consumers who cancelled their memberships or initiated chargebacks with financial institutions to dispute their transactions with the company. Despite discontinuing this practice in May 2016, the company has not made full refunds to all affected consumers."