Gap Class Action Settlement Gives Shoppers 30% Off Coupon

California Gap and Banana Republic shoppers will be sent a 30 percent off discount coupon under a proposed false advertising class action settlement.

The Gap Inc. and a Class of customers asked California Superior Court Judge Yvette M. Palazuelos on Wednesday to approve the discount coupon settlement, which also includes $1 million in attorneys’ fees.

Gap counsel told Judge Palazuelos that they’ve been able to identify most of the potential Class Members who said they were deceived by “sale” signs in California Gap and Banana Republic store locations.

According to the Gap class action lawsuit, window sale signs lured shoppers in with the promise of discounts but didn’t inform them that sale prices were only for certain clothing items.

The sale advertising litigation originally included two separate class action lawsuits against both Banana Republic and Gap over similar allegations, but the cases were eventually consolidated.

Gap and Banana Republic shoppers claimed the clothing retailers violated California’s Unfair Competition Law, False Advertising Law and the Consumer Legal Remedies Act.

After four years of litigation, the parties were able to reach the tentative Gap class action settlement in September 2018.

Under the terms of the Gap class action settlement, Class representatives Clferilyn DeAguero, Sean Bose and Rakhee Bose will each receive $8,000. Gap has also agreed to pay for the settlement administration costs, along with $1 million in attorney fees.

The Gap sale class action settlement will provide a coupon to Class Members to purchase up to four items for 30 percent off the regular price.

Class counsel noted that the discount coupon provides an opportunity for Gap shoppers to get a discount on clothing items that “never go on sale.”

The Court was informed that potential Class Members will be determined from Banana Republic’s and Gap’s records of customers who purchased an item that wasn’t 20 to 50 percent off on a day where the “sale” advertisements were on display in store windows.

This isn’t the first time Gap and Banana Republic have been accused of using false advertising in their stores. Another class action lawsuit accused the companies of using fake “original” prices on price tags to give shoppers the impression that they were getting a great discount at Gap Factory and Banana Republic Factory stores.

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The Gap and Banana Republic customers are represented by William M. Turner and Asha Dhillon of Jones Bell Abbott Fleming & Fitzgerald LLP.

The Gap, Banana Republic False Advertising Sale Class Action Lawsuits are Veera v. Banana Republic LLC, et al., Case No. BC541146, and Etman v. The Gap Inc., Case No. BC547161, in the Superior Court of California for the County of Los Angeles.