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Consumer Law
False Advertising
Promotional Gift Cards and Discounts

Laura Maybaum v. Babies "R" Us Inc.; Babiesrus.com LLC; Toys "R" Us, a Delaware Inc., Toys "R" Us Inc.; Toysrus.com Inc.

Published: Dec. 29, 2012 | Result Date: Dec. 6, 2012 | Filing Date: Jan. 1, 1900 |

Case number: BC466115 Settlement –  $1,100,000

Court

L.A. Superior Central


Attorneys

Plaintiff

Christopher J. Hamner
(Hamner Law Offices, APLC)

Amy T. Wootton
(Wootton Law Group LLP)

Nicole K. Brooks


Defendant

Joseph Duffy
(Morgan, Lewis & Bockius LLP)


Facts

Laura Maybaum filed a class action lawsuit against Toys "R" Us, alleging that the company falsely advertised that consumers would receive full refunds on returned items purchased with promotional gift cards and discounts. According to the lawsuit, customers who purchased products that offered free gift cards, buy-one-get-one 50 percent off discounts, or other benefits received less than the full purchase price on returns. A California law prohibits giving less than full cash or credit refunds unless a more restrictive policy has been announced.

Result

The parties settled for $1.1 million. Toys "R" Us also agreed to change its business practice by providing enhanced disclosure of its return policy.


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