Earlier this week, the Sixth Circuit flatly rejected a bid by a consumer to recover damages allegedly caused by Wish.com’s advertised price comparisons (opinion available here). The online marketplace uses struck-through manufacturers’ suggested retail prices next to products’ purchase prices, which plaintiff Gerboc alleged are misleading and caused him injury when he purchased a pair … Continue Reading
Retailers offering online, telephone or catalog purchases may want to review the shipping fees charged to their customers in the wake of several class actions recently filed in California. Multiple retailers have been hit with consumer class actions challenging their shipping fees as exceeding the actual shipping costs incurred by retailers in fulfilling customer orders. … Continue Reading
Five Arkansas attorneys have been formally reprimanded by a federal judge in the Western District of Arkansas after stipulating to dismissal “for the purposes of seeking a more favorable forum and avoiding an adverse decision” in connection with the approval of a class settlement. The court had initially considered harsher injunctive sanctions, including requiring the … Continue Reading
The Third and Seventh circuits have reached a sharp divide during the past year over the meaning of the implied “ascertainability” prerequisite to class certification. The Third Circuit affirmed a narrow version of ascertainability in Byrd v. Aaron’s Inc., 784 F.3d 154, 168 (3d Cir. 2015), but several months later the Seventh Circuit refused the … Continue Reading
The common retail practice of comparing an item’s current price with a higher “original,” “regular,” or “MSRP” price has recently come under increasing fire from consumers, who say the higher comparison price is often fictitious and misleads shoppers into believing they are getting a better bargain than they really are. Over the past two and … Continue Reading
Editor’s Note: Originally published by the Columbus Chamber of Commerce, this article appeared on their website March 10 2016. It is republished to BakerHostetler’s Class Action Lawsuit Defense blog with their permission. The Supreme Court recently held that a defendant cannot get rid of a class action by merely offering to settle with the named plaintiff on … Continue Reading
Relying on “basic principles of contract law,” the Supreme Court on Wednesday held that an unaccepted settlement offer and offer of judgment under Rule 68 are “legal nullit[ies]” that have no effect on whether a live controversy remains between the parties. Campbell-Ewald Co. v. Gomez, No. 14-857. The upshot of the Court’s decision is that … Continue Reading
Retailers have been under siege, particularly in California, by putative class actions involving allegations of “false or misleading” advertising practices. Generally, the crux of the allegations is that retailers are inducing customers to make purchases by overstating or fabricating the amount that a customer will save by purchasing an item. In the past two years, … Continue Reading
Spann v. JCPenney and People of California v. Overstock.com By Rodger L. Eckelberry, Rand L. McClellan, and Jacqueline K. Matthews June 30, 2015 A recent class certification decision in California involving challenges to a retailer’s price comparison advertisements should prompt retailers to carefully evaluate their sale advertising practices. Whether comparing to “regular” or previous prices, or to the sale … Continue Reading
In a recent ruling vacating denial of class certification, the Third Circuit provided guidance on the scope of the implied “ascertainability” requirement under Rule 23. Byrd v. Aaron’s, Inc., 2015 U.S. App. LEXIS 6190 (3d Cir. April 16, 2015) involved a putative class action against Aaron’s, which leases, among other things, laptop computers to consumers. … Continue Reading