Fashion Counsel with Anthony V. Lupo

Arent Fox's fashion law blog offers news, analysis, and insights for the industry from fashion attorney Anthony Lupo.

Fashion Counsel with Anthony V. Lupo

New Wave of Shipping Fee Class Actions: High Steaks

alert

New Wave of Shipping Fee Class Actions: High Steaks

Omaha Steaks International Inc. recently became the target of a proposed class action lawsuit, in which the company is accused of charging unreasonable shipping fees that were excessive compared to the company’s actual costs.

The plaintiff, Neiman McCoy, alleges that he purchased a jar of Tangy Buffalo Rub from the Omaha Steaks website for $3.99, but then had to pay an additional $15.99 for shipping and handling, a flat rate charged by Omaha for orders under a certain total. McCoy alleges that the cost for shipping would have been less than half of that charge for his order through the United States Postal Service, and that the fee ultimately includes a profit for the company. He alleges that this is contrary to ethical guidelines provided by the Direct Marketing Association.

McCoy is seeking compensatory damages for the proposed class, including full refunds of shipping and delivery charges that were in excess of Omaha’s actual costs, as well as injunctive relief.

This case illustrated the issues that may arise with online orders and shipping costs. Arent Fox will continue to monitor this case. In the meantime, please contact Anthony Lupo, Matthew Mills, Diana Bae, or your Arent Fox attorney with questions.

SUBSCRIBE

Add the Arent Fox Fashion Law blog to your RSS feed reader.

Arent Fox In Your Inbox
To subscribe to Arent Fox Alerts and other news, click here.

ABOUT ARENT FOX LLP

Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.