Foot Locker Inc. Faces Another Card Lawsuit

Foot Locker Inc. was hit by another lawsuit involving its gift cards. The complaint filed in the Superior Court of the State of California for the County of San Bernardino alleges that the retailer illegally sold pre-paid gift cards that are not redeemable when the balance on the card falls below $10 in violation of California consumer laws.


The plaintiff in the case, Matthew Moore of San Bernardino, bought the gift card after January 1, 2008. The complaint states that “as a result of this deception, defendants have been able to sell more gift cards and products, which constitutes unjust revenue and profit.”


The lawsuit is seeking class action status. The lawsuit seeks actual damages suffered by plaintiff and members of the class, as well as punitive damages and attorney's fees.


In October, a New Jersey man sued Foot Locker over the retailer's alleged Foot Locker's use of so-called dormancy fees – a small fee charged to the gift card if it hasn't been used for a specific period of time.

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Foot Locker Inc. Faces Another Card Lawsuit

Foot Locker Inc. was hit by another lawsuit involving its gift cards. The complaint filed in the Superior Court of the State of California for the County of San Bernardino alleges that the retailer illegally sold pre-paid gift cards that are not redeemable when the balance on the card falls below $10.


 

The plaintiff in the case, Matthew Moore of San Bernardino, claims that by not redeeming the card below $10, Foot Locker violated California Civic Code 1749.5. The complaint said that “as a result of this deception, defendants have been able to sell more gift cards and products, which constitutes unjust revenue and profit.”

 


The lawsuit is seeking class action status. it seeks actual damages suffered by plaintiff and members of the class as well as punitive damages and attorney's fees. Moore said he bought the gift card after January 1, 2008.


In October, a New Jersey man sued Foot Locker over the store's gift card policies, charging in court papers that they violate New Jersey's consumer laws. In a lawsuit filed in Middlesex County, Sayreville resident Joseph Vona claimed that Foot Locker's use of so-called dormancy fees – a small fee charged to the gift card if it hasn't been used for a period of time – are contrary to a state law passed in 2006 under the auspices of the Consumer Fraud Act.

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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