International Dairy Queen Inc. faces a potential class action alleging it violated consumer-protection laws with a “bait-and-switch” scheme by advertising a free Blizzard without verifying that all store locations would honor the coupon. Spencer v. Int’l Dairy Queen, Inc., No. 18-1252 (D. Ore., filed July 13, 2018). The complaint alleges that the plaintiffs viewed an advertisement promising a "special treat for fans with our new mobile app," which displayed a coupon for a free small Blizzard, directed users to choose a store location and displayed a promotional code valid for 15 minutes. The complaint contends that hundreds of people posted online comments complaining that several locations refused to honor the coupons. Claiming violations of Oregon’s Unlawful Trade Practices Act and unjust enrichment, the plaintiff seeks damages, restitution, attorney’s fees and a judgment against Dairy Queen “for the monetary value of at least five Blizzards per class member.”
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Burger King has agreed to settle a putative class action alleging some of the chain’s locations overcharged consumers who presented buy-one-get-one-free coupons for breakfast sandwiches, charging them more than they would have paid without the coupons. Anderson v. Burger King, No. 17-1204 (D. Md., motion filed October 11, 2017). According to the plaintiff’s unopposed motion for settlement, Burger King began an internal investigation of the complaint’s allegations and promptly sent a software update to franchises and written instructions to restaurant cashiers to ensure the problem stopped. If the class is certified for the purposes of the settlement, class members who have receipts will receive $5 payments and those without will receive $2 gift cards.
A Maryland consumer alleges that when she used coupons offering a free sandwich with the purchase of an initial sandwich, Burger King locations in Maryland, Virginia, the District of Columbia and Florida charged her more than they would have if she had purchased sandwiches without the coupons. Anderson v. Burger King, No. 17-1204 (D. Md., filed May 2, 2017). The complaint asserts that Burger King’s coupon promotion offers a “free” sausage, egg and cheese breakfast “Croissan’wich” to customers who buy one Croissan’wich at the regular price. The plaintiff claims she went to a Maryland location, presented a coupon and was charged $3.19 for the two sandwiches she received. She later purchased a single sandwich and was charged only $2.16, the complaint alleges. She found similar results at locations in (i) the District of Columbia, where the two coupon sandwiches cost $4.61 and the single sandwich cost $1; (ii) Virginia, where…
Consumers have filed a putative class action against Albertson’s Inc. and Safeway Inc. alleging the companies raise prices on meat during “buy one get one free” (BOGO) deals, resulting in consumers “actually paying for the meat that is sold as ‘free’ in these special sales.” Stewart v. Albertson’s Inc., No. 16-15125 (Ore. Cir. Ct., Multnomah Cty., filed May 4, 2016). The complaint asserts the stores rotate BOGO offers on a number of meat products, including pork chops, chicken breast and beef sirloin, but offer the products at lower prices when they are not on special. Further, the stores “sell the same meat products at regular [loyalty card] prices that are lower than the BOGO prices. When they do this, Defendants sometimes sell the same product under different names.” The plaintiffs offer an example: “Safeway sold boneless, skinless chicken breasts to [loyalty card] members for $1.99 per pound. At the same…
Researchers with the University of California, San Francisco, have reported that 25 percent of 1,056 online coupons surveyed during a four-week period “were for processed snack foods, candies and desserts,” raising questions about the impact of retailer discounts on dietary patterns. Andrea López & Hilary Seligman, “Online Grocery Store Coupons and Unhealthy Foods, United States,” Preventing Chronic Disease, January 2014. According to the study, which reviewed all online coupons weekly from six retail grocery chains across the United States, the largest percentage of available coupons was for processed snack foods (25 percent), followed by prepared meals (14 percent), beverages (12 percent) and cereals (11 percent). While less than 1 percent of coupons were for fruits or beverages, more than 50 percent of the total beverage coupons were for sodas, juices and sports/energy drinks. “Our data are consistent with previous research showing that grocery stores infrequently promote foods that support a…
Naked Wines LLC has filed an action against Nakedwines.com, Inc. and Groupon, Inc. alleging that they have infringed its “family of erotically-themed marks” including NAKED WINERY®, NAKED WINERY VIXEN®, NAKED WINERY NAUGHTY®, and NAKED WINERY DIVA®. Naked Wines LLC v. Nakedwines. com, Inc., No. 12-01717 (D. Or., filed September 21, 2012). According to the complaint, Oregon-based Naked Wines has used the marks since 2005 and has “developed and maintains customers throughout the United States.” The marks have purportedly “become an asset of substantial value as a symbol of Plaintiff and its products.” Nakedwines.com, located in Napa, California, is allegedly “the U.S. arm of a UK-based, online company that sells and distributes wine from multiple producers.” According to the plaintiff, defendant Nakedwines.com, which is working with various producers to sell 400,000 cases of wine in the United States in 2013 and planning to open a winery in California under the name “Naked…
