Adore Me built its rapid-growth lingerie business around a VIP membership model that offered customers steeply discounted merchandise, but the discount came with an automatic monthly charge unless members purchased an item or actively opted out. Customers complained that the billing terms were difficult to understand and that cancelling the membership could be unusually cumbersome. The controversy became more serious when members discovered that accumulated store credits—earned through the recurring charges—could be forfeited when they cancelled. Customer Kathy Lira sued the company, seeking damages, injunctive relief, and court costs after her payment card was repeatedly billed. The dispute drew the attention of the Federal Trade Commission, which investigated Adore Me’s disclosures and billing practices. The company ultimately agreed to refund as much as $1.38 million to customers who had forfeited store credits and to make the financial obligations of the monthly subscription clearer.
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AI concept artworkArchive Record · 2010s–2020s
The Lingerie Subscription Trap: Adore Me’s Negative-Option Billing Scandal
Adore Me / 2010s–2020s
Adore Me built its rapid-growth lingerie business around a VIP membership model that offered customers steeply discounted merchandise, but the discount came with an automatic monthly charge unless members purchased an item or actively opted out. Customers complained that the billing terms were difficult to understand and that cancelling the membership could be unusually cumbersome. The controversy became more serious when members discovered that accumulated store credits—earned through the recurring charges—could be forfeited when they cancelled. Customer Kathy Lira sued the company, seeking damages, injunctive relief, and court costs after her payment card was repeatedly billed. The dispute drew the attention of the Federal Trade Commission, which investigated Adore Me’s disclosures and billing practices. The company ultimately agreed to refund as much as $1.38 million to customers who had forfeited store credits and to make the financial obligations of the monthly subscription clearer.
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