The powerful trio of TJX Companies: TJ Maxx, Marshalls, and HomeGoods and former customers are awaiting court approval of the pending class action settlement. Four plaintiffs met with a California federal judge in mid-September regarding the $8,500,000 settlement which hangs in the balance. Expectations are that the case has satisfied early qualifications for conditional approval in the preliminary hearing.
Class members filed suit against TJ Maxx and the pairing companies back in July 2015 with a consolidated class action lawsuit being filed on September 3, 2015. Plaintiffs claim the businesses utilized wrongful advertising practices with misleading prices that were never matched. TJX listed numberous sale prices in advertisements that were well below marketed “Compare At” prices for products available throughout California locations. Members contend that listed prices were not meant to reflect intend sale price.
TJX Companies’ initial action was to dismiss the lawsuit. U.S. District Court judge Otis D. Wright denied the motion in belief that the pricing margin was an act of deception to beguile the standard buyer. The company continues to deny any and all allegations regarding the pricing suit. However, their effort to avoid extensive litigation and accompanying expenses results in the current settlement. A hearing for the two-year old filing is scheduled for October 16, 2017.
The proposed TJ Maxx settlement offers a pair of reparations for effected customers. TJX will provide merchandise credits to eligible Class Members who were victimized by the price differential. These credits can be used as a cash equivalent for any product sold at TJ Maxx, Marshalls, or HomeGoods.The secondary option is for class members to exchange the credits for cash at a 75% of the initial value. TJX will not be limited to singular payment back to consumers. The defendant has agreed to change its “Compare At” pricing strategy and disclosures on all websites and signs. With this change comes ensured compliance with California’s price comparison laws.
Potential class members will seek approval of the $8.5M settlement at the upcoming hearing. While the conditions are presently affirmed, TJX Companies’ present stance against the lawsuit implies there may be a small chance for denial. Expectations at present are that the deceptive pricing settlement will be approved.
Update: The The TJX Companies Inc. has agreed to a $8.5 million class action settlement. File a claim below: