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Snuggie maker to pay $8M for deceiving customers

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HOUSTON – The company behind the Snuggie blanket and other popular as-seen-on-TV products will have to pay $8 million to settle claims that it overcharged customers.

According to the New York Attorney General, the company, Allstar, roped in customers with commercials promising a "Buy one, get one free" offer.  However, the company left out that it would charge exorbitant processing and handling fees to make up for its losses, in some cases doubling the cost of the offer.

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The attorney general investigated Allstar after receiving hundreds of complaints. Most of the $8 million settlement will go to customers who were misled.