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Deceptive Business Practices

Rite Aid Sign

Pharmacies are supposed to charge insurance companies and customers their “usual and customary” (U&C) price for generic prescription drugs. This is normally the price paid by customers who do not have insurance and who pay cash, but the complaint claims that Rite Aid charges a higher price, in violation of federal and state regulations. The complaint alleges violation of laws against negligent misrepresentation, unfair competition, and unjust enrichment, among other things. 

Apple iPhone 7

Do Apple updates intentionally slow down older iPhones? This complaint claims that it does, that there’s a partial fix, and that Apple has deliberately not told consumers about either one. The models involved are the iPhone 6, 6 Plus, 6S, 6S Plus, SE, 7, or 7 Plus. Apple claimed that its 10.2.1 update would improve security and “power management during peak workloads” and prolong the life of the device. According to the complaint, on December 20, 2017, Apple finally admitted that its latest iOS updates deliberately showed the phones’ performance.

24 Hour Fitness Interior

24 Hour Fitness is settling both class action and government lawsuits centering on the company’s prepaid fitness club memberships that allow customers to purchase memberships for one to three years. The class action complaints allege that the company told customers purchasing prepaid memberships that renewals would remain at the same prices for life, but then raised renewal prices. 

CenturyLink Logo on Wall

CenturyLink is again found settling a class action, this time one in the state of Missouri that alleges that the company sold a “Pure Broadband” package that was supposed to be broadband service only but actually included a limited-use phone line. 

Facade of Fry Store

Fry’s Electronics advertised the sale of computer graphics cards with warranties, but the complaint for this class action questions whether it intended to honor the warranties. Ramos bought an open-box graphics card for which Fry’s claimed it would honor the manufacturer’s warranty, but when the card malfunctioned, Fry’s refused to replace the card or refund the purchase price, on the grounds that Ramos had not registered the card with the manufacturer. However, the papers needed for the registration are only available to buyers of brand-new cards.

Navient Building

If a student loan company Navient Solutions does not tell a borrower of all options available, is it contributing to the predatory schemes of another company that then takes advantage of that borrower? That’s what the complaint for this class action alleges in bringing suit against both Navient Solutions, formerly known as Sallie Mae, and Studebt, which ensnared plaintiff Shawn M. Davis in an outright fraudulent arrangement. The complaint alleges, among other things, that Navient breached its contract as well as its covenant of good faith, and that Studebt committed fraud and breach of fiduciary duty, and also violated the TCPA while marketing its fraudulent scheme.

Floating on Water

Plaintiff Michael Marko called Reservations.com and booked three hotel rooms in Paducah, Kentucky for December 8-10, 2016. According to the complaint, he gave Reservations.com a payment method and they made the reservation, but he never received a confirmation or receipt. He had no idea, he claims, that he had been charged a $14.99 fee for each of the three rooms he’d booked. Later, when he tried to cancel one of the rooms, he was not permitted to, even though he claims to have fulfilled all the requirements.

AmeriGas Truck

AmeriGas has decided to settle a class action alleging that it violated Florida’s Deceptive and Unfair Trade Practices Act in the way it charged fuel recovery fee. The complaint claimed that the fee is deceptive because it does not bear a relationship to AmeriGas’s real fuel costs. 

Motorola Smartwatch

This settlement resolves a class action alleging that Motorola failed to live up to its obligations in providing warranty services. It claimed that the company was liable for breach of warranty, unjust enrichment, and violation of a number of states’ consumer protection laws. 

Herbalife Event

Herbalife has a system which it touts as a way to success: sell its products, recruit others to do the same, and attend its live events. The complaint quotes a speaker as saying, “If you go to all the events, you qualify for everything—you will get rich.” According to the complaint, the events consist primarily of testimonials, which the complaint calls “emotionally manipulative” stories of “former dropouts, vagrants, bartenders, flight attendants, nurses, teachers, single mothers, used car salesmen, bus drivers, and college volleyball players–each of whom has achieved astounding success through Herbalife and through religious attendance of Circle of Success events.” The complaint describes “[l]ong scripted days of income claims accompanied by loud music, shouting, clapping, hugging, and crying” that “move the prospect toward ‘I can do this!’” However, the complaint lays out the improper ways in which some of the successful actually make their money.

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