Customer Gets Another Chance at Kohl’s Rewards Program Class Action Lawsuit

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A Kohl’s customer who says she joined a “misleading” rewards program didn’t get a fair chance at a class action lawsuit against the company, an appeals court has ruled.

Last Wednesday, three California appeals court judges ruled that a lower court had made a mistake in throwing out Plaintiff Crystal Waters’ class action lawsuit against Kohl’s, Law360 reported.

In the class action, Waters alleged that Kohl’s runs a rewards program that has misleading statements in its fine print, causing customers to actually spend more on some purchases. 

The rewards program, “Kohl’s Cash” offers customers rewards of $10 earned on future purchases over $50. However, Waters says the program is confusing, especially around discounts.

She is suing under the Consumer Legal Remedies Act (CLRA), California’s unfair competition law and false advertising law.

While a lower court threw out Waters’ class action, the appeals court panel ruled that she wasn’t given a proper chance to do discovery, Law360 reported.

Kohl’s had argued that it processed customer Kohl’s Cash coupons exactly as the terms and conditions on the coupons state, and that these terms and conditions wouldn’t mislead a “reasonable consumer,” Law360 reported.

Waters had repeatedly asked to access information such as consumer complaints and whether Kohl’s had faced any other legal action over the reward program, but she was not allowed that access, Law360 reported. 

On Wednesday, the appeals panel ruled that she had asked for relevant information, and Waters should have been able to seek it out.

“Waters should have been permitted a reasonable opportunity to take discovery on the likelihood that Kohl’s Cash certificates mislead a reasonable consumer before the trial court adjudicated the CLRA cause of action against her on the ground that the certificates do not mislead a reasonable consumer,” the appellate panel reportedly said.

The appeals court also ruled that Waters and Kohl’s were treated disparately in the case hearing by the lower court.

“By the time the case was well advanced, Kohl’s had deposed both plaintiffs and Waters’ expert, and had submitted deposition testimony from all three witnesses in support of its no-merit motion,” the opinion reportedly said. 

This is not the first time Kohl’s has faced a class action lawsuit from consumers. In 2019, the department store was hit with a class action alleging its discounted items are misleading to customers.

Have you joined a rewards program where you felt the Ts & Cs were misleading? Let us know in the comments! 

The plaintiffs are represented by Robert L. Esensten and Jordan S. Esensten of Esensten Law.

The Kohl’s Rewards Program Class Action Lawsuit is Crystal Waters et al. v. Kohl’s Department Stores Inc., Case No. B300638, in the Court of Appeal of the State of California, Second Appellate District, Division Seven.

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