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December 27, 2012 / Nazareth M. Haysbert

Settlement Reached in Easy Saver Customer Rewards Program Class Action Lawsuit

A preliminary settlement has been reached in a class action lawsuit against Provide Commerce, Inc., the operator of online retail stores including ProFlowers, Cherry Moon Farms, Secret Spoon and Sharri’s Berries. The class action lawsuit alleged that Provide Commerce automatically enrolled consumers who purchased products through these websites into membership programs and then fraudulently charged the consumers an activation and monthly fee for the programs without their knowledge or permission.

Federal and California state laws, including the Federal Electronic Funds Transfer Act, the California False Advertising Law, the California Consumer Legal Remedies Act, and the California Unfair Competition Law, prohibit companies from engaging in unfair and deceptive practices such as enrolling consumers in reward programs and charging them fees without their consent.

Provide Commerce, Inc. denies the allegations, but has decided to settle the class action lawsuit, entitled In re EasySaver Rewards Litigation, to avoid further litigation.Under the terms of the settlement, Provide Commerce has agreed to establish a $!2.5 million fund to compensate consumers who were enrolled in the membership programs.  The approximately two million class members who placed an order with a website operated by Provide Commerce, Inc., and were subsequently enrolled in a membership program between August 19, 2005 and June 28, 2012, are eligible to receive a cash refund and a fully transferable $20 credit valid for a future online purchase of merchandise at one of Provide Commerce’s online retailers.  The settlement proceeds also include approximately $40 million in coupons that can be used by the class members for future purchases with the online retailers.

Once the settlement is approved by the Court, class members who submit a claim form by December 10, 2012 will be eligible to participate in the settlement. The final Approval Hearing is scheduled for January 25, 2013 at 1:30 p.m. in Courtroom 12 of the San Diego Courthouse of the United States District Court for the Southern District of California.

If you or a loved one feels they have been misled by deceptive sales practices, please contact Khorrami, LLP for a confidential evaluation of your rights.


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