🏠 SelectBlinds® Accused of Fake Discounts, Agrees to $10 Million Settlement
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SelectBlinds, a prominent online retailer of window coverings, has agreed to a substantial $10 million settlement over a class action lawsuit led by plaintiffs Roger Barr, Elisa Montes de Oca, and Gabriela Fernandez. The lawsuit stems from accusations that the company displayed faux regular prices alongside sale prices, misleading customers into believing they were snagging a deal, while in reality, the discounts were fictitious.
The presiding U.S. District Judge Sherilyn Peace Garnett is set to hear an unopposed motion to preliminarily approve the settlement and certify the class on the 25th of October. This case highlights yet another scenario where e-commerce platforms are under scrutiny for alleged deceptive pricing practices.
The Nitty Gritty of the Accusations
The crux of the lawsuit revolves around SelectBlinds’ alleged tactic of posting regular prices on its website only to flaunt sale prices beside them, purportedly available for a fleeting period. The claimants argue that customers invariably received at least a 30% discount off the regular price.
However, the lawsuit contends that SelectBlinds never actually sold their products at the listed regular prices, meaning the purported discounts were nothing but a ruse. In essence, the plaintiffs assert that by listing bogus regular prices and discounts, SelectBlinds hoodwinked customers into thinking they were getting a bargain.
The Settlement Breakdown
Under the terms of the settlement, SelectBlinds will offer two forms of compensation to the class members: a 12% cash refund for those who submit a claim, or a 12% store credit for those who opt not to file a claim. The proposed division of the settlement fund earmarks $8.5 million for direct benefits to the class, with the remaining $1.5 million covering administration costs, incentive awards, and attorneys’ fees. The class representatives are set to receive service awards of $2,500 each.
A Ripple Effect in the Industry?
This lawsuit's repercussions extend beyond SelectBlinds. Another notable window-covering retailer, The Shade Store LLC, now faces a similar class action lawsuit for allegedly offering products and accessories at fake sale prices, in breach of California law.
It seems like the window-covering industry is under a legal microscope for its pricing strategies. This begs the question: is this a one-off or a symptom of a wider issue within the online retail sector?
Let us know your thoughts, especially if you have purchased from SelectBlinds. Your experience could shed more light on this unfolding story.
