According to reports, Chick-fil-A has agreed to pay $4.4 million in refunds or gift cards to customers in order to resolve a class action lawsuit that accused the chain of misleading delivery charges.
Thank you for reading this post, don't forget to subscribe!The company, headquartered in Atlanta, was sued in the U.S. District Court for the Northern District of Georgia, alleging that it falsely advertised free or discounted delivery through the Chick-fil-A app, which turned out to be deceptive. And the website did too.
The lawsuit was brought by six plaintiffs from Virginia, Arkansas, Maryland, South Carolina, and Texas, who claimed that Chick-fil-A added a concealed fee to delivered menu items, contradicting the company’s promise of free or discounted delivery. According to the complaint, the pricing discrepancy was clear.
Before the COVID-19 pandemic, the restaurant chain charged a $4.99 delivery fee, but when lockdown measures were implemented early in the pandemic, Chick-fil-A claimed to reduce the fee to $2.99 or $3.99 in order to boost business. However, during this time, the company secretly raised the prices of menu items for delivery orders, without disclosing this to customers, to cover their delivery costs and increase profits, as stated in the lawsuit.
As a result, the food prices for delivery were 25% to 30% higher than what was charged in the lawsuit. For instance, a 30-piece order of chicken nuggets would cost $5 to $6 more if ordered for delivery compared to pick-up or dine-in.
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Chick-fil-A has not admitted liability in the case, but they will establish a $1.45 million cash fund and a $2.95 million gift card fund for consumers, as reported by the website Top Class Action.
Both Chick-fil-A’s attorneys and the plaintiffs’ attorneys did not respond to the requests for comment made by USA TODAY.
Indications that you will receive compensation in the Chick-fil-A lawsuit
An undisclosed number of customers are expected to receive either a $29.25 cash payment or a $29.25 gift card from Chick-fil-A as part of the settlement, according to the Top Class Action site. If the settlement fund is insufficient to cover all claims, the payment will be prorated, as explained on the site.
Eligible recipients will be notified via email, so make sure to keep an eye on your inbox. Chick-fil-A has agreed to provide the necessary email addresses to the settlement administrator for the purpose of notifying class members.
Based on the proposed settlement amount of $29.25, there could potentially be 150,427 affected customers when dividing the total of $4.4 million.
Additionally, as part of the settlement, Chick-fil-A will disclose on its app and website that menu items’ prices may be higher for delivery orders.
The Chick-fil-A settlement states that “Plaintiffs allege that by omitting, concealing, and misrepresenting material facts about Chick-fil-A’s delivery service, the Company is misleading consumers into making a purchase they would not otherwise make.”
Chick-fil-A Class Action Suit | PDF | Legal Remedies to seduce
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Source: www.usatoday.com
