Emily Sortor  |  May 12, 2020

Category: Children’s Products

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mom and kids shopping at The Children's Place

A settlement ending claims that The Children’s Place used fake sales to attract customers is now accepting claims for benefits.

Customers who shopped at The Children’s Place either in-store or online between Feb. 11, 2012 and Jan. 28, 2020 may be eligible for benefits from the settlement in the form of a The Children’s Place discount on future purchases.

Class Members are eligible for The Children’s Place in-store coupons that will give them money off their next purchase.

Those who file a claim have a choice between vouchers worth $6 off a purchase, or 25 percent off a purchase, valid for the first $100 of their purchase.

A total of 800,000 vouchers will be available to Class Members. According to the settlement website, the settlement is worth a total of $6.8 million.

The amount and number of vouchers a Class Member can collect depends on the value of the purchases that they initially made, determined as followed:

  • Tier One Claims: Class Members whose documented purchases are less than $50, or those who cannot provide proof of purchase for their purchase are considered to be in Tier One. Tier One customers are eligible to receive one The Children’s Place in-store coupon.
  • Tier Two Claims: Tier Two Class Members include customers who can provide proof of purchase and whose documented purchases are between $50.01 and $150. Alternatively, Class Members who can provide a Class Member number sent to them via an email notice of the settlement are considered to be Tier Two claimants. These consumers are eligible for two The Children’s Place discount coupons.
  • Tier Three Claims: Class Members who have proof of purchase for purchases worth more than $150 are considered Tier Three customers, and are eligible for three vouchers.

Proof of purchase is required to be eligible for Tier Two or Tier Three compensation. Documentation could include receipts as well as other documentations of a Class Member’s purchase.

The deadline to file a claim is May 30, 2020. Claim Forms can be submitted either online through the settlement website or by mail.

Class Members should be aware that remaining in the Class, if they receive benefits or even if they do not receive benefits, will require them to waive their rights to pursue independent litigation over The Children’s Place discount false ad issue.

The Children's Place discount sales are allegedly misleading.

If a Class Members want to exclude themselves from the Class or if they wish to object to the settlement, they must do so by May 30, 2020.

Class Members are invited to attend a final approval hearing for the settlement, scheduled to take place on July 31, 2020.

The Children’s Place discount false advertising class action lawsuit was filed by customers who claimed that the company falsely advertised sales to lure customers into making purchases that they might not otherwise have made.

Allegedly, the company would advertise not only the current price of an item, but make it seem as if that price was a sale price by listing a higher “original” price on the tags and advertisements.

However, customers argued that the items were never offered at the higher price and that the sales were therefore fake.

Allegedly, the company was aware that many customers are enticed by sales because they believe that they are getting an item worth much more than the price they paid for it.

In the customers’ eyes, they and many other buyers were financially injured by this sales tactic. Allegedly, had they known that the items they bought were not originally offered at a higher price, they might not have purchased them or would not have paid as much as they did for them.

The plaintiffs believe that the company falsely implied that the items were more valuable than they were and it was that perceived value that led them to make the purchasing choices that they did.

The customers and The Children’s Place have agreed to end these claims in a settlement, in an effort to avoid the potential costs and risks of litigation. Customers will not receive all benefits that they would have if they had received a successful judgment in court — the settlement is estimated to be worth around 13 percent of what customers could have won in court.

The judge noted that many settlements that provide vouchers by way of benefits are often subjected to increased scrutiny, to determine if they really provide a value to customers. However, the fake discount settlement was approved with its The Children’s Place in store coupon benefit because the judge determined that the vouchers provide customers with sufficient purchasing power.

Have you ever purchased something on sale because you believed that it was worth more than the purchase price? Share your experiences in the comments below.

Customers are represented by Todd Carpenter of Carlson Lynch Sweet Kilpela & Carpenter LLP.

The Children’s Place Discount Class Action Lawsuit is Rael v. The Children’s Place Inc., et al., Case No. 3:16-cv-00370-GPC-JMA, in the U.S. District Court for the Southern District of California.

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11 thoughts onThe Children’s Place Discount Settlement Open For Claims

  1. Jacqueline M Woods says:

    add me

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