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UPDATE: October 2020, the Costa Sunglasses class action settlement is now open. Click here to file a claim.
Costa Sunglasses has agreed to pay $60 million to resolve class action claims that the retailer illegally charges warranty fees to repair broken sunglasses.
U.S. District Judge Timothy J. Corrigan recently gave the proposed deal preliminary approval, writing that it “appears likely that this court will be able to: (1) approve the proposed settlement as fair, adequate and reasonable under Rule 23(e)(2); and (2) certify the class for purposes of judgment on the proposed settlement.”
By preliminarily approving the settlement, Judge Corrigan certified four separate Classes. The first Florida purchase Class includes Florida consumers who bought sunglasses from Costa Sunglasses between July 28, 2013 and Jan. 21, 2018.
The second Florida repair Class includes Florida residents who purchased sunglasses from Costa Sunglasses before Jan. 1, 2018 and were charged a fee to repair their broken sunglasses since July 28, 2012.
The third national repair Class includes consumers who purchased sunglasses from Costa Sunglasses before Jan. 1, 2018 and who were charged a repair fee since April 3, 2015. For both of these Classes, repairs must have been required due to accident, normal wear and tear, or misuse.
The fourth and final warranty Class includes consumers who purchased non-prescription glasses from Costa Sunglasses before Jan. 1, 2016 and who paid a warranty fee to repair or replace broken sunglasses since Aug. 20, 2013.
Under the terms of the deal, Costa Sunglasses will set up a $40 million fund to provide vouchers for affected consumers. With these vouchers, eligible consumers will reportedly be able to redeem the funds during online purchases from Costa Sunglasses.
In addition to the $40 million settlement fund, the proposed settlement will provide an additional $21 million in benefits to the Class by covering shipping and handling for the purchased products.
A Class Member’s benefits will vary depending on which Class they belong to. Both of the repair Classes will receive vouchers worth $19.99. The Florida purchase Class will receive vouchers worth $10 while the warranty Class will receive vouchers for $8.99.
In order to recover compensation from the settlement, Class Members are reportedly required to submit a valid claim form by Jan. 31, 2021, according to the settlement approval motion. Requests for exclusion from the settlement are also due to the settlement administrator by Jan. 31, 2021.
Non-monetary relief is also proposed as part of the Costa Sunglasses class action settlement. Under the agreement, the retailer has reportedly promised to change their marketing and packaging to remove claims that they provide a “lifetime warranty.” The retailer will also stop describing their repair fees as “nominal.”
By funding the settlement, Costa Sunglasses resolves three class action lawsuits against the company which challenged the retailer’s “lifetime warranty.”
Although the company’s marketing repeatedly touted the warranty to be comprehensive and unending, plaintiffs in the class action lawsuits argued that consumers are forced to pay a fee of $11.95 plus tax to repair or replace their broken sunglasses under warranty.
“As it is applied by Costa, Costa’s purported ‘Lifetime Warranty’ against manufacturer’s defects violates federal law because customers must pay an illegal fee to take advantage of it,” plaintiff Troy Smith argued in his Costa Sunglasses class action lawsuit.
“More specifically, although Costa offers ‘Costa’s Lifetime Warranty,’ Costa does not repair or replace Costa sunglasses damaged by a manufacturer’s defect ‘without charge’ as required by federal law.”
Another class action was filed in state court resulted in a Class certification. Evidence and testimony in this case reportedly showed that Costa maintained a list of repair charges between $49 and $89. Unfortunately, these costs were allegedly concealed from consumers until they were charged the fees after paying $9.95 to ship their broken sunglasses to Costa Sunglasses.
Costa Sunglasses has not admitted any wrongdoing and denies that they violate the law with repair and warranty fees. However, the retailer has agreed to pay more than $60 million to resolve the claims against them. Class counsel in the case will reportedly ask the court for 30% of the total settlement fund.
Did you purchase Costa sunglasses? Are you eligible for the recent settlement surrounding broken sunglasses? Share your experiences in the comment section below.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
Plaintiffs and the proposed Class are represented by Peter P. Hargitai, Joshua H. Roberts, Laura B. Renstrom and Michael M. Gropper of Holland & Knight LLP.
The Costa Sunglasses Class Action Lawsuit is Smith, et al. v. Costa Del Mar Inc., Case No. 3:18-cv-01011, in the U.S. District Court for the Middle District of Florida.
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22 thoughts onCosta Sunglasses to Pay $60M in Warranty Settlement
I would like to be included in class action suit. I have several pair of Costa’s that they are denying the claims saying not covered, and have charged me for some that were covered.
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