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$1.1M Toys “R” Us Refund Class Action Settlement Reached
By Mike Holter
A California judge yesterday approved a $1.1 million class action lawsuit settlement that will resolve allegations Toys “R” Us falsely advertised that consumers would receive full refunds on returned items purchased with promotional gift cards and discounts.
According to the class action lawsuit, filed in July 2011, Toys “R” Us customers who purchased products that offered free gift cards, buy-one-get-one 50 percent-off discounts or other benefits received less money than the full purchase price on returns. This violated a California law prohibiting retailers from giving less than full cash or credit refunds unless a more restrictive policy has been announced, the class action lawsuit alleged.
Lead plaintiff Laura Maybaum filed the class action lawsuit based on a November 2009 store visit in which she bought four toys totaling over $75 and received a free $10 gift card. When she later returned one of the toys, Toys “R” Us allegedly refused to refund the toy’s full purchase price.
“She didn’t get the value of the coupon,” Los Angeles Superior Court Judge Jane L. Johnson said at Wednesday’s hearing. “That’s what this case is about.”
Judge Johnson approved the Toys “R” Us settlement as “fair, adequate and reasonable.”
Under the Toys “R” Us refund class action settlement, Class Members will receive a voucher for $10 off a purchase of $50 or more. Class Members include all California consumers who purchased products from Toys “R” Us stores since January 1, 2008 that qualified for a promotion and subsequently returned one or more items.
Toys “R” Us also agrees to change its business practice by providing enhanced disclosure of its return policy for merchandise purchased as part of a promotion, including by placing the disclosure on point-of-sale displays.
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The case is Laura Maybaum v. Toys “R” Us Inc., et al., Case No. BC466115, Superior Court of the State of California, County of Los Angeles. The plaintiffs are represented by Christopher J. Hamner, Amy T. Wootton and Nicole K. Brooks of Hamner Law Offices APC.
Updated December 6th, 2012
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Michael’s Craft Stores also engage in this type of refunding policy. The receipt lists a purchasing price, but beneath that price, is a return value price listed in parentheses. This happens if any type of coupon is used.