The Children’s Place has agreed to a $6.8 million settlement and will provide 800,000 vouchers to consumers who were allegedly misled by a sale scheme.
The settlement benefits consumers who shopped at any The Children’s Place store or online at the store’s website between Feb. 11, 2012 and Jan. 28, 2020.
Plaintiffs in The Children’s Place class action lawsuit claimed that the retailer utilized a false sale scheme to convince consumers to make purchases.
Allegedly, the retailer would advertise their products with an “original” price and a “sale” price which was significantly discounted. According to The Children’s Place class action, the original price was misleading because the products hadn’t been sold for that price.
“Plaintiffs further allege that the advertised discounts were nothing more than mere phantom markdowns because the represented ‘original’ price tag prices were false because Defendant rarely, if ever, offered for sale the merchandise at the purported ‘original’ prices,” the plaintiffs wrote in a court filing.
Consumers were reportedly misled by these comparison prices and deceived into believing that they were getting a good deal on certain products.
The Children’s Place did not admit any wrongdoing but has agreed to a $6.8 million settlement to resolve the claims against them. Under the terms of the settlement, The Children’s Place will provide 800,000 vouchers to Class Members.
The settlement was granted preliminary approval by a judge in February. U.S. District Judge Gonzalo P. Curiel approved the settlement after finding that the deal was “fair, adequate, and reasonable.”
Although some voucher-based settlements are determined to be insufficient, Judge Curiel determined that The Children’s Place settlement was a good value because the vouchers “provide Class Members with adequate purchasing power.”
The judge also noted that settling cases like these is often a favorable outcome because litigating the claims can be “complex and likely to be expensive and lengthy to try.” Because of this, the settlement was approved, despite representing only 13 percent of the potential award plaintiffs could recover if they won a trial.
Under the settlement, Class Members can collect in-store vouchers good for $6 off a purchase or 25 percent off the first $100 of a purchase. Class Members can collect between one and three vouchers depending on whether or not they can provide proof of purchase and the total of their documented purchase amounts. More information is available in the “Potential Award” section below.
In order to benefit from The Children’s Place fake sale class action settlement, Class Members must file a valid claim form by May 30, 2020. The deadline for exclusion from and objection to the settlement is May 30, 2020. The final approval hearing for the settlement is scheduled for July 31, 2020.
Consumers who shopped at any The Children’s Place store or online at the store’s website between Feb. 11, 2012 and Jan. 28, 2020.
In-store vouchers for either $6 off a purchase (no minimum purchase amount) or 25 percent off a purchase (of the first $100). The number of vouchers that can be claimed depends on the claimant’s tier, as follows:
- Tier One Claims: Class Members who don’t submit proof of purchase or whose documented purchased are less than $50. Tier One claimants can recover one voucher.
- Tier Two Claims: Class Members whose documented purchase totaled between $50.01 and $150 or who can provide a Class Member number sent to them via email notice. Tier Two claimants can recover two vouchers.
- Tier Three Claims: Class Members whose documented purchases were more than $150. Tier Three claimants can recover three vouchers.
Proof of Purchase
Receipts or other documentation of purchases at The Children’s Place stores or online website.
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
Rael v. The Children’s Place Inc., et al., Case No. 3:16-cv-00370-GPC-JMA, in the U.S. District Court for the Southern District of California
Rael TCP Pricing Claims Administrator
c/o KCC Class Action Services LLC
P.O. Box 43212
Providence, RI 02940-3212
CARLSON LYNCH SWEET KILPELA & CARPENTER LLP
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