Nordstrom Class Action Lawsuit Challenges ‘Authorization’ Charges

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Last week, Nordstrom Inc. was hit with a class action lawsuit challenging the retailer’s practice of imposing “authorization” charges on customers’ credit card accounts, which were temporary but which could cause the consumers’ credit card to go over the credit limit.

In November 2016, plaintiff Julie Killpack placed an online order with Nordstrom using a Virgin America Visa Card, for a total order of $240, the Nordstrom class action lawsuit says.

On Dec. 1, 2016, Killpack allegedly noticed additional charges from Nordstrom on her credit card statements in the amount of $78.84, $78.84 and $19.75.

When she saw the three charges, Killpack immediately contacted Nordstrom’s customer service department and was informed that these “authorization” charges would be dropped in seven to 10 days, according to the Nordstrom authorization charge class action lawsuit.

However, these “authorization” charges allegedly caused Killpack’s credit card to go over the credit limit, which reportedly caused her to lose Virgin America airlines points she would otherwise have incurred.

“Defendants never informed Plaintiff that she would incur unauthorized ‘authorization’ charges, which would remain on Plaintiff’s account for 7-10 days, despite their representation to Plaintiff at the time that this was a ‘common practice,’” the Nordstrom class action lawsuit states.

Killpack says Nordstrom should have notified her that it would charge the “authorization fees” when she made the purchase.

“Plaintiff gave her money, attention and time to Defendant because of the price that the internet service was advertised,” Killpack says in the Nordstrom authorization charge class action lawsuit. “Defendant benefitted from falsely advertising the prices of the service. Defendants benefited on the loss to Plaintiff and provided nothing of benefit to Plaintiff in exchange.”

According to the Nordstrom class action lawsuit, Killpack would not have purchased items from Nordstrom if she had known the retailer was going to add unauthorized charges to her account. She alleges these unauthorized charges constitute a violation of California’s Unfair Competition Law.

“Such sales tactics rely on falsities and have a tendency to mislead and deceive a reasonable consumer,” Killpack claims in the Nordstrom authorization charge class action lawsuit.

Killpack filed the Nordstrom class action lawsuit on behalf of herself and a proposed Class of consumers in the United States who purchased or attempted to purchase retail products from Nordstrom, and who incurred unauthorized “authorization” charges during the transaction.

She seeks an injunction prohibiting Nordstrom from continuing to engage in these allegedly unfair business practices, as well as punitive damages, statutory damages, attorneys’ fees, pre- and post-judgment interest, and other relief the court deems proper.

Killpack has requested a trial by jury.

The plaintiff is represented by Todd M. Friedman, Meghan E. George and Adrian R. Bacon of Law Offices of Todd M. Friedman PC.

The Nordstrom Unauthorized ‘Authorization’ Charges Class Action Lawsuit is Julie Killpack v. Nordstrom Inc., et al., Case No. 2:17-cv-06811, in the U.S. District Court for the Central District of California.