STAPLES RESOLVES CLASS-ACTION LAWSUIT

  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • 161213_banner_futorag_902x177px
  • big-banner-ad_2-sean
  • Print
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 2toner1-2
  • 536716a_green_sweep_web_banner_902x17712
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • facebook-tonernews-12-08-2016
  • toner-news-big-banner-nov-8
  • 4toner4
  • futor_902x177v7-tonernew
Share

STAPLES RESOLVES CLASS-ACTION LAWSUIT

 user 2006-10-31 at 1:51:00 pm Views: 41
  • #16535

    Staples suit resolved by classy action
    Chain distributes more vouchers than settlement required
    October 2006 Staples
    Inc. gave its Massachusetts customers a nearly $73,000 bonus last
    month, handing out more shopping vouchers than it was required to under
    a class-action settlement.The office supply chain was supposed to hand
    out a maximum of 76,800 vouchers worth $7.50 apiece, or one for each of
    the first 1,200 shoppers at its 64 stores on Monday, Sept. 25.But
    demand was so high that the company decided to hand out vouchers to
    everyone who came in to its stores. Staples says it handed out 86,529
    vouchers, 13 percent more than it had to and an average of 1,352 per
    store. The vouchers were worth a total of $648,967.The voucher
    settlement was a novel way of compensating Staples customers for the
    chain’s alleged failure to comply with a state regulation requiring it
    to mark prices on individual items in its stores.Class actions have
    come under attack in recent years for their reputation for high legal
    fees and minimal benefit to the customers allegedly wronged. Settlement
    funds in many cases have often gone to charities or been parceled out
    in the form of coupons that could only be redeemed by making an
    additional purchase.In the Staples case, the parties agreed that $7.50
    vouchers would be handed out to customers visiting the chain’s
    Massachusetts stores on what the retailer dubbed “Consumer Day.” The
    vouchers could be used to purchase virtually anything in the store. No
    minimum purchase was required.Under terms of the settlement, Staples
    was required to select a Monday for the voucher giveaway on which
    historically at least 525 customers on average had made purchases at
    each of the chain’s Massachusetts stores.The final numbers indicate
    passenger traffic on Sept. 25 was 2.5 times the historical average.
    Neither party was allowed to advertise the voucher giveaway, but
    Staples was required to post signs about it in its stores.Sam Perkins ,
    the lead plaintiffs’ attorney, who received $210,000 in legal fees as
    part of the settlement, said press coverage of the voucher giveaway as
    well as pass-along e-mails he sent to school boards, school
    superintendents, unions, and lawmakers helped build customer
    traffic.”I’m impressed,” he said. “Anything that gives something back
    to consumers in a seamless way is a good model for class actions.”Owen
    Davis , a spokesman for Staples, said the company decided to hand out
    more vouchers than it was required to because it didn’t want any
    customer to leave empty handed.Davis said he didn’t know how many
    customers who came into the chain’s stores on Sept. 25 ended up
    spending more than $7.50. “We were pleased with the response on that
    day,” he said.Colman Herman of Dorchester, the lead plaintiff in this
    case and a participant in several previous item-pricing cases with
    other retailers, said the voucher giveaway was far superior to previous
    settlements where retailers donated money to various charities.”This
    case was all about victims who were allegedly harmed,” he said. “The
    money got back into their pockets.”