Sam’s Club Class Action Alleges Members Forced To Upgrade

A recent class action lawsuit claims that businesses are forced to upgrade to a Sam’s Club Membership Plus at an additional charge.

According to plaintiff Virginia Herrmann, Sam’s Club is guilty of “an unlawful and deceptive pattern of wrongdoing […] regarding the unilateral elimination without notice of the Sam’s Business Membership for members who had already paid for it and the up-charging of said members into Sam’s Plus Memberships.”

Herrmann claims that, in 2019, she had a Sam’s Business Membership – giving her access to early shopping hours and other benefits. After paying a fee in early February 2019, Herrmann says she expected to be able to use her membership until her next renewal date in 2020.

However, one morning in July 2019, Herrmann attempted to check out at Sam’s Club and was allegedly told that the company no longer offered business memberships. As a result, she was unable to take advantage of early morning shopping hours unless she upgraded to a Sam’s Club Membership Plus – a higher priced option.

A customer service representative from Sam’s Club reportedly told the plaintiff that the change in business memberships was a company policy but that members were being informed on a “case by case” basis as they came into the store.

Needing to complete her purchase and unable to do so with her business membership, Herrmann claims that she paid $34.35 in Sam’s Club membership fees for an upgrade.

Unfortunately, during her next visit, Herrmann reportedly noted that “store greeters were no longer checking membership cards to confirm whether shoppers were eligible to shop before 9:00 a.m.” At this time, an employee allegedly told her that all levels of memberships were eligible to shop early morning hours – regardless of their membership level.

Herrmann claims that, had she known that she would still have access to early shopping hours, she would not have paid to upgrade her membership.

According to the Sam’s Club Membership Plus class action lawsuit filed by Herrmann, the wholesale retailer violated consumer protection laws “by unilaterally eliminating, without notice, the Sam’s Business Membership after members paid for it and/or by deceiving, fraudulently inducing and/or coercing Sam’s Business Membership members customers into paying to upgrade to a Sam’s Plus Membership.”

Herrmann and other consumers allegedly had a contract with Sam’s Club in the form of their business membership. After paying Sam’s Club membership fees, consumers reportedly expected that they would have access to promised benefits – including the exclusive ability to shop before 9 a.m.

“Sam’s Club breached its contract with Herrmann by unilaterally terminating the Sam’s Business Membership without notice to Herrmann and by withdrawing the benefits said membership conferred, including but not limited to the ability to shop before 9:00 a.m. with the benefit of not having members who were not also Sam’s Business members shopping at the same time,” the Sam’s Club Membership Plus class action lawsuit argues.

The class action lawsuit brings a variety of claims under Missouri state laws including the Missouri Merchandising Practices Act and other consumer protection legislation.

Herrmann seeks to represent a Class of consumers who were charged for a Sam’s Club Membership Plus upgrade between Feb. 2, 2019 and Feb. 2, 2020 after previously having a business membership.

On behalf of herself and the proposed Class, Herrmann seeks actual damages, punitive damages, interest, injunctive relief, court costs, and attorneys’ fees.

Although the Sam’s Club Membership Plus class action lawsuit was filed in Missouri state court, Sam’s Club removed the case to federal court in late May based on several factors.

The retailer notes that there are more than 100 proposed Class Members – with 150,000+ memberships upgraded to a plus membership during the Class period.

Additionally, Sam’s Club contends that the amount in controversy is more than $5 million. The amount in upgrades reportedly exceeds this threshold. Sam’s Club notes that the plaintiff is seeking punitive damages which only increases the amount in controversy.

Have you been forced to upgrade to a Sam’s Club Membership Plus? Have you paid significant Sam’s Club membership fees? Share your experiences in the comments section below.

Herrmann and the proposed Class are represented by James G. Onder, W. Wylie Blair, Martin L. Daesch, and Lawanna S. Wichmann of Onderlaw LLC.

The Sam’s Club Membership Plus Class Action Lawsuit is Virginia Herrmann v. Sam’s East Inc. d/b/a Sam’s Club #6474, Case No. 4:20-cv-00706, in the U.S. District Court for the Eastern District of Missouri.

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