Electrolux Class Action Says Excessive Shipping Costs are Unethical

A putative class action lawsuit accuses household appliance maker Electrolux of illegally and unethically charging too much for shipping costs.

Under the brand name “Eureka,” and through its website, Electrolux markets assorted products but then charges additional shipping costs that exceed the actual cost of shipping, the Electrolux class action lawsuit contends.

Plaintiff Jim Reider says he purchased a filter from Electrolux via its website www.eureka.com on Dec. 15, 2016. For the filter, Reider paid $1.99, but was then charged $7.99 for shipping costs.

According to Electrolux’s website, the “Shipping Method” portion of a charge provides for a choice of: Ground Service at $7.99; Second Day Air Service at $15; and Next Day Air Service at $25.

Reider says the amounts Electrolux charges for shipping costs is unethical and unfair, pointing to a calculator found on the United States Postal Service’s website which indicates the actual shipping costs for the filter was less than half the price charged by Electrolux.

“Defendant’s shipping/handling charges were not reasonably related to Defendant’s costs of delivering or shipping the items to consumers but instead exceeded those costs,” the lawsuit states.

Filed Jan. 8, 2017, in California federal court, the basis for Reider’s complaint is that it is unethical to charge more for shipping and delivery than a company’s actual costs of shipping, postage, and handling.

Reider also claims that the Eureka delivery charges violate California consumer protection laws since the price of these shipping costs contain improper and unethical profits for Electrolux.

Furthermore, Electrolux’s excessive shipping costs are “unethical” under rules established by the Direct Marketing Association (DMA), according to the complaint.

The current version of the DMA’s ethical guidance on shipping costs states that a company’s goal “should be not to charge consumers as a whole more than you pay in total.” The DMA guidelines also state that “Postage, shipping or handling charges, if any, should bear a reasonable relationship to actual costs incurred.”

The Electrolux deceptive shipping costs class action also argues that excessive shipping fees are deceptive under California consumer protection laws, because consumers expect shipping and delivery fees to have a reasonable relation to the company’s actual shipping costs.

Reider is bringing this action on behalf of himself and other similarly situated California consumers who purchased products from www.eureka.com and were charged “excessive, deceptive, unfair and unethical” shipping/handling fees for delivery of Electrolux products.

He is seeking certification of the putative Class and compensatory damages including a full refund of the amount of shipping costs consumers paid in excess of Electrolux’s actual shipping costs. The lawsuit is also asking for a preliminary and permanent injunction barring Electrolux from continuing to charge excessive shipping costs.

Reider is represented by Scott J. Ferrell and Victoria C. Knowles of Pacific Trial Attorneys.

The Electrolux Excessive Shipping Costs Class Action Lawsuit is Reider v. Electrolux Home Care Products Inc., et al., Case No. 8:17-cv-00026, in the U.S. District Court for the Central District of California.