Hatchimals Class Action Lawsuit Says Toy Equivalent to ‘Coal in Stockings’

Spin Master Corp. engaged in a bait and switch marketing scheme to convince parents and children that the Hatchimals interactive stuffed animal was the “it” gift of the 2016 Christmas season, according to a class action lawsuit filed last week in California federal court.

“Christmas is a time for family, religion, and for millions of eager children around the world, a time for presents,” plaintiff Jodie Hejduk says in the Hatchimals class action lawsuit. “Across the world, corporations and manufacturers clamor to produce the ‘it’ gift item of the season.”

Corporations that are successful in developing, manufacturing, producing and selling the season’s “it” gift often experience “a Christmas miracle in the form of millions, or potentially billions, of dollars,” the Hatchimals class action lawsuit states.

Hatchimals were reportedly highly coveted by children over the 2016 holiday season. The interactive stuffed animal is meant to “hatch” out of the colorful egg in which they are sold, bringing joy to children who are excited to find out what is inside.

According to the Hatchimals class action lawsuit, Spin Master launched the Hatchimals toy in October, providing plenty of time to generate consumer excitement before the holiday season. By November, the toys were sold out in many locations, leading to a black market for Hatchimals.

The toys were sold at a retail price of $50 to $60, but Hatchimals on the black market were selling for around $350, the Hatchimals class action lawsuit alleges.

Hejduk claims Spin Master engaged in a “brilliant” marketing campaign when it launched the Hatchimals toy. However, despite the toy company’s representations, many of the Hatchimals stuffed animals failed to “hatch” out of their eggs, which is one of the toy’s primary draws.

The false advertising class action lawsuit states that the Hatchimal’s packaging, instructions and the company website all indicate that it will take a total of up to 20 to 25 minutes for a Hatchimal to hatch out of the egg.

The Hatchimals class action lawsuit points to numerous online complaints from consumers who claim their Hatchimal failed to hatch despite following the instructions. At least one consumer reported breaking the shell to extract the Hatchimal, only to find that the batteries contained inside were dead. Once the batteries were replaced, the toy functioned as advertised, but the child was deprived of the anticipated “hatching” experience.

Hejduk says Spin Master took a “few token remedial measures” to address the issue, but they were ineffective. She says the company should have either volunteered to recall the product or offer reimbursements to consumers who purchased the defective Hatchimals product.

“This action is brought on behalf of millions throughout this country—for the dutiful parents who waited hours and days outside retail stores, the children who cried tears of joy upon unwrapping their very own Hatchimal, and the American consumer who places faith and trust that they are purchasing products that work for those they love the most,” the Hatchimals class action lawsuit says.

The Hatchimals class action lawsuit asserts violations of the California Consumer Legal Remedies Act, Unfair Competition Law and False Advertising Law. It also brings claims for unjust enrichment, breach of express warranty and injunctive relief.

Hejduk is represented by Mark J. Geragos, Ben J. Meiselas and Eric Y. Hahn of Geragos & Geragos APC and Lori G. Feldman, Andrea Clisura, Courtney E. Maccarone and Justin G. Sherman of Levi & Korinsky LLP.

The Hatchimals Class Action Lawsuit is Jodie Hejduk v. Spin Master Corp., et al., Case No. 1:17-cv-00093, in the U.S. District Court for the Eastern District of California.