Facts

Eric Hoffman, an individual and on behalf of all others similarly situated, filed a putative class action against Peg Perego USA Inc. relating to the "Made in USA" label on one of Peg Perego's products.

PLAINTIFF'S CONTENTIONS:
Hoffman claimed defendant committed unlawful and unfair business practices when it falsely labeled its children's electric riding vehicles as "Made in USA." Plaintiff claimed the "Made in USA" label was used in violation of California's Unfair Competition Law (Cal. Bus. and Prof. Code Sections 17200 et seq.) and "Made in USA" statute (Cal. Bus. and Prof. Code Section 17533.7), when they were actually made with component parts manufactured outside the United States.

Result

Per the settlement agreement, class members will receive a free Peg Perego safety vest valued at $20. Peg Perego agreed to comply with all applicable laws relating to future sales of its children's riding vehicle products. It also agreed to donate $400,000 worth of children's toys to various charities over the course of five years.