Staples Class Action Says Website’s Terms of Service Illegal

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Staples Inc. is facing a potential class action lawsuit over allegations that its website’s terms of service violate New Jersey Law.

Plaintiff Darla Braden of New Jersey filed the Staples lawsuit arguing that a section of the website’s “Terms & Conditions” states that people using the website cannot sue the retailer for any damages beyond $1.

Additionally, the terms of service allegedly states that these conditions absolve Staples of being sued (again, for more than $1) for punitive damages.

Under U.S. law, punitive damages can only be assessed for the most extreme breaches of law, typically willful recklessness or malicious actions.

However, New Jersey has a state law called the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act. This law is designed to protect consumers in New Jersey, and among the provisions of the Act are regulations that govern agreements like “Terms & Conditions.”

Specifically, the Staples class action cites a specific passage of the TCCWNA: “Terms & Conditions Which Purport to Exculpate Defendant from Liability for Any and All Tortious Actions and Purport to Deny Plaintiff’s Grounds for Redress Violate the TCCWNA.”

Among the regulations of the TCCWNA are provisions that allow consumers to file consumer protection lawsuits against companies that violate the Act.

Additionally, the plaintiff claims that the New Jersey Products Liability Act (NJPLA) also governs warranties and may come to bear on the matter.

The Staples lawsuit states that “Plaintiffs have a legal right under the NJPLA to bring suit against manufactures and sellers of dangerous products.”

According to the complaint, NJPLA provisions allow consumers to file suit for both actual damages, and statutory damages. This means that under these laws, consumers may be entitled to cash awards simply because their transaction took place with a defendant that violated the law—if the Staples lawsuit holds up in court.

The text of the complaint mentions threats like identity theft and other forms of fraud that could stem from a data breach of Staples’s website and argues that Staples’s attempt to preemptively absolve themselves of any harm that could come from a problem with their website is a violation of the relevant New Jersey laws.

The potential Class Members for this lawsuit are numerous. The complaint itself does not attempt to enumerate them, as there are so many. In fact, the text of the complaint states that anyone in New Jersey who purchased from the Staples website could potentially be a Class Member for the purposes of this potentially-massive class action lawsuit.

The plaintiff is represented by Mark W. Morris, Gerald H. Clark of the Clark Law Firm PC; Scott J. Ferrell and Victoria Knowles of the Newport Trial Group.

The Staples Website Class Action Lawsuit is Darla K. Braden, et al. v. Staples Inc., Case No. 3:16-cv-03848, in the U.S. District Court for the District of New Jersey.