An online lingerie company will pay $800,000 to settle a lawsuit over misleading automatic renewal charges, Santa Clara County prosecutors said.
Prosecutors filed the consumer protection lawsuit on Aug. 10 after receiving online complaints from over a hundred customers in California, according to prosecutor Jennifer Deng.
The lawsuit alleges the company didn’t clearly disclose automatic charges connected to VIP lingerie memberships, didn’t receive clear consent for the renewal fees and had unfair cancellation practices.
Adore Me will pay $200,000 in restitution to the victims, in addition to a $600,000 settlement.
The company will also donate $250,000 in merchandise to homeless and women’s shelters throughout the state, including the Salvation Army, Next Door Solutions, Bill Wilson Center and the YWCA in the Bay Area, San Diego and Los Angeles.
Deng said the company has also negotiated a separate settlement with the Federal Trade Commission for customers who do not live in California.
The company cooperated with the investigation and made changes to its website, the automatic renewal policy and store credit and cancellation practices, according to prosecutors.
Deng said in a statement:
“California has some of the strictest automatic renewal laws in the country. … Online businesses need to make sure the consumer is aware of the charges and agrees to it.”