In the case Allstar Mktg. Grp., LLC v. United States, Ct. Int’l Trade, 13-00395, 2/10/17, the Justice Department claimed that Snuggies are garments, similar to scholastic robes or priestly vestments, and should therefore be taxed at such.
Judge Mark Barnett of the Court of International Trade ruled otherwise. He stated that since Snuggies don’t have closures, they can be sold as blankets. The judge rejected the Justice Department’s argument that Snuggies are akin to priestly vestments or scholastic robes.
It’s not the first time that the Allstar Products Group got into hot legal waters. Last year, consumers filed complaints about the company’s unethical marketing practices. An investigation found that consumers often faced undisclosed processing and handling fees and misleading up-selling offers. The Company reached an agreement with the New York Attorney General to pay $8m to settle the case. Eric Schneiderman issued a statement noting: "This agreement returns money to thousands of consumers in New York and across the nation who believed they were buying items at the price advertised on television, but ended up with extra merchandise and hidden fees they didn't bargain for.”
The origins of the Snuggie are also fishy. It looks like Allstar Product Group ripped off the Slanket, which was invented by Gary Clegg in 1997 and has been on the market ever since.
(Image courtesy of Slanket)
