GNC Will Pay $6M To Settle Online ‘Sale’ Class Actions

General Nutrition Centers has agreed to pay $6 million to settle three class action lawsuits that claim GNC advertised fake markdowns online to trick consumers into thinking the items were on “sale.” 

As benefits in the GNC class action settlement, Class Members are eligible for either a $5 cash benefits or a $15 voucher for future online purchases.

Class Members are also eligible for a $30 coupon for an online purchase of $100, and customers who made more than five purchases during the Class period, or who purchased more than $100 in products would be eligible for an additional $5 cash benefit or $15 voucher, in addition to the standard benefit.
Attorneys are requesting up to $1.5 million of the settlement fund.

Per the terms of the settlement deal, GNC has also agreed to take steps to ensure that its online advertising of sales is not misleading to consumers and is in line with legal regulations.

The GNC class action settlement marks the end of not one, but three class action lawsuits filed over General Nutrition Centers’ allegedly fake sales.

Around 3.6 million Class Members would be eligible for settlement benefits. Class Members include customers who purchased GNC products online since Jan. 1, 2012 as part of a sale or promotion.

Customers described the litigation that led up to the settlement deal as “high-risk” and “hard fought.” The plaintiffs expressed approval of the proposed settlement deal, saying it was an “excellent result.”

One of the GNC fake sale class action lawsuits was filed by Ashley Gennock and Daniel Styslinger in May 2016 in Pennsylvania federal court. The customers claimed that GNC advertises that certain products were on sale, and includes both the original higher price and the newer, lower price.

The GNC customers claimed that the products had not been offered at the original higher price. Allegedly, GNC advertised the products in this way because customers saw the products as having more value if they were once offered at a higher price and then a lower one.

GNC reportedly knows that customers may assign value this way, and are aware that customers are more likely to purchase a product they believe was once offered at a higher price.

The GNC fake online sale class action lawsuit claimed that this misled customers, because shoppers rely on advertised pricing, both original and reduced, to make their purchasing decisions.

Allegedly, advertising fake sales meant that customers could not use pricing to accurately make decisions about value and whether or not they wanted to purchase an item.

The customers claimed that GNC violated the Pennsylvania Unfair Trade Practices Law and Consumer Protection Law. The consumers also said they were financially injured by GNC because had they known that the products offered on sale had not really been listed before at the higher price, they might not have purchased them or would not have paid as much for them as they did.

In June, the Pennsylvania GNC misleading sale prices class action lawsuit was consolidated with two similar GNC fake sale class action lawsuits filed in California.
The $6 million settlement deal awaits preliminary approval.

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The GNC customers are represented by Robert Ahdoot and Tina Wolfson of Ahdoot & Wolfson PC, Gary F. Lynch of Carlson Lynch LLP, Jeffrey R. Krinsk and Trenton R. Kashima of Finkelstein & Krinsk LLP, Nick Suciu of Barbat Mansour Suciu & Tomina PLLC, and Reuben D. Nathan of Nathan & Associates APC.

The GNC False “Sale” Price Class Action Lawsuit is Ashley Gennock, et al. v. General Nutrition Centers Inc., et al., Case No. 2:16-cv-00633, in the U.S. District Court for the Western District of Pennsylvania.
UPDATE: October 2019, the GNC fake sale class action settlement is now open.Click here to file a claim.

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