Walmart Must Face COVID-19 Return Policy Class Action Lawsuit

A proposed class action lawsuit against Walmart over its temporary pandemic return policy was allowed to inch forward after a judge ruled employees of the retail giant inconsistently applied rules about whether consumers can return goods.

U.S. District Judge Jesus Bernal upheld two of six causes of action that plaintiffs alleged against Walmart, allowed plaintiffs to amend three other claims and dismissed another claim at the retailer’s request. 

The judge’s order, filed Friday in the U.S. District Court for the Central District of California, allows a lawsuit filed by three California residents who purchased items at Walmart stores this spring to continue moving through the courts, in part, following Walmart’s attempt to get the case dismissed.  

Lead plaintiff Danielle Hubmer filed the complaint against Walmart on behalf of herself and other potential Class Members, who the plaintiffs say could number in the hundreds of thousands. Two other named plaintiffs, Kelly Schwalback and Angela O’Brien, were later added to the complaint. 

Hubmer says a class action lawsuit is proper in this case because given the size of claims of individual Class Members, “few, if any, could afford to seek legal redress” individually. Once the defendant’s liability is established, the class action lawsuit will “permit an orderly and expeditious administration” of Class Members’ claims, TCA previously reported. 

 The three women claim they each purchased items at different Walmart locations in Southern California during April, May and June 2020.

In Hubmer’s case, she purchased $151.99 worth of clothing and exercise equipment at a store in Temecula on April 25. At the time she was shopping, the dressing room at the store was closed, so she was not able to try on any of the clothing items she planned to purchase, according to the Walmart class action lawsuit.

Two days later, when she attempted to return her purchases, the store manager refused to accept the items for return, citing a new COVID-19 return policy, and told Hubmer they would never be eligible for refund, according to the complaint.

The Walmart return policy was not posted in the store, the lawsuit alleges. 

Schwalbach and O’Brien each had similar experiences when attempting to return items they purchased in April and May.

According to the Walmart class action lawsuit, store managers refused to accept items they purchased for return, citing the new return policy that allegedly was not posted at the store locations they patronized, in Upland, San Jacinto and Murrieta. In O’Brien’s case, she was also allegedly told her items would never be eligible for return. 

Walmart posted the temporary return policy on its website June 15, 2020, stating returns had been “paused” on “food, paper goods, home cleaning supplies, laundry soap, pharmacy, health & beauty and apparel items.” It also said it had reopened returns on some of these items in some states, and continued the “pause” on other items amid the COVID-19 pandemic.  

Judge Bernal said the retailer’s argument as it attempted to dismiss the case is flawed in that the temporary Walmart return policy posted on its website “is not the same temporary return policy to which its store managers subjected plaintiffs.”

“Defendant claims that its online Temporary Return Policy ‘did not ban returns,’ but its store managers told plaintiffs that they would never be able to return their goods,” the judge wrote. “Defendant’s managers across multiple stores were clearly implementing a different policy than is posted on its website. Posting that policy would have clarified things for Plaintiffs — and for Defendant’s own employees.”

The complaint alleged six causes of action, including violation of California’s Consumers Legal Remedies Act, fraudulent and unfair business practices, as well as unlawful business practices in violation of the California Business and Professions Code, breach of contract, violation of a state law requiring “conspicuous display” of a retailer’s return and exchange policy and negligent misrepresentation.

The judge dismissed the first three claims but allowed plaintiffs to amend them to cure factual deficiencies and file an updated complaint by Nov. 25.

The judge tossed the sixth claim, negligent misrepresentation, agreeing with Walmart that it is barred by the economic loss doctrine.

The remaining two claims, about breach of contract and “conspicuous display,” will be considered as the case moves forward. 

Have you tried to return items to Walmart during the pandemic? What was the result? Let us know in the comments.

The plaintiffs are represented by Mitch Kalcheim of Kalcheim Law Group PC.

The Walmart Return Policy COVID Class Action Lawsuit is Danielle Hubmer, et al. v. Walmart Inc., Case No. 5:20-cv-01369-JGB-KK, in the U.S. District Court for the Central District of California.

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