Company behind Snuggies to payout $7.2M in refunds

Allstar Marketing Group, the company behind the fleece blanket with sleeves, is paying customers $7.2 million in refunds for practices the Federal Trade Commission says were deceiving.
1:36 | 03/15/18

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Transcript for Company behind Snuggies to payout $7.2M in refunds
We are back now with the payday you could get if you bought a snuggie. Go ahead, admit it. You bought snuggies. I think we're the only ones at the table who don't have one. Mine might be leopard print. You'll tell us how this is possible. I am, indeed. If you bought a snuggie or several other as seen on TV items, you might have money coming to you. Now the checks are in the mail. It's the late night TV staple. Now there's the snuggie. The blanket that has sleeves. More than 30 million snuggies were sold in the company's first five years alone raking in over $500 million. Total warmth and comfort. Reporter: The fleece has achieved cult status on TV. You guys join a cult? Reporter: With talk show hosts. What they should throw in is a pointy hat so you can look like a wizard or something like that. Reporter: And online. Basically it's a robe you wear backwards. Reporter: Now all star marketing group, the company end into the snuggie is paying customers $7.2 million in refunds for practices the federal trade commission says were deceiving consumers. The company frequently offered buy one get one free promotions for $19.95 but the ads never disclosed customers would be charged a nearly $8 handling fee for each blanket. Nearly doubling the price to $35.85. Those customers will receive on average about $33 each. You and I are the only ones with a snuggie and will snuggle up possibly to a check. I like it. I like it a lot.

This transcript has been automatically generated and may not be 100% accurate.

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