In a welcome new development, a major retailer has agreed to pay $10 million in settlement of a lawsuit contesting its sale practices. This settlement follows a series of rising lawsuits in the current year disputing companies’ sales advertising methods. Previous cases brought into question staple grocery store ‘Buy One Get One free’ (BOGO) promotions, routine sales from a dominant retailer, and large settlements concerning other retailers’ sales practices.
The recent $10 million settlement involves SelectBlinds, the lawsuit alleges that the ‘sale practices’ adopted by the retailer were against the stipulations as per California law. For more details, visit the link provided by the law firm, Kelley Drye & Warren LLP.
As legal professionals, the trend towards these claims ought to pique our interest. Businesses should strive not only to ensure legal compliance in their sales and advertising practices but also anticipate how those practices could be perceived by consumers — and, at an extreme, litigators. The surge in lawsuits against sale practices suggests a shift in consumer sentiment and legal scrutiny. Companies, especially retailers, now face increasing scrutiny for their sale practices, advertising methods, and promotional strategies. In light of this, it would seem prudent for companies to reevaluate their advertising policies regularly to ensure compliance with rapidly changing laws.
This SelectBlinds case stands as a reminder that even with the best intentions – companies may find themselves facing pricey litigation if they don’t tread carefully in today’s evolving legal landscape. Ensuring compliance with state and local laws, and keeping a close watch on industry trends and consumer sentiment, can help companies avoid costly legal disputes and settlement fees in the future.
For those of us working in the legal departments of large corporations or top law firms, these events should serve as a wake-up call. Given the current legal atmosphere, a proactive approach towards conforming to advertising laws could save companies from substantial legal risks in the near future.