Direct Payments for Hot Topic Shoppers: $12.5M False Advertising Settlement
According to The Sun, Customers of Hot Topic, a well-known pop culture clothing and merchandise retailer, may be eligible for cash distributions following a class action lawsuit related to false advertising claims. The lawsuit alleged that Hot Topic misrepresented discounts on certain items, leading to claims of misleading advertisements that violated consumer protection laws in California and Oregon.
Although Hot Topic has not admitted any wrongdoing, the company has agreed to settle the lawsuit with a payout of $12.5 million to avoid incurring further legal expenses. Affected customers will receive payouts, but they must meet specific eligibility criteria.
Eligibility Requirements
To qualify for the settlement, customers must fulfill the following four requirements:
- Purchase Location: They must have purchased items from Hot Topic’s website rather than its physical stores.
- Residency: Eligible customers must be residents of California or Oregon.
- Purchase Dates:
- California residents: Purchases must have been made between March 15, 2019, and July 29, 2024.
- Oregon residents: Purchases must have been made between August 25, 2022, and July 29, 2024.
Filing a Claim
Hot Topic customers do not need to provide receipts or documentation to file a claim, although they may include them if desired. Claim forms can be completed on the settlement website created for this case, where customers will need to enter their Class Member ID. Eligible individuals should have received a notice via mail or email containing their Class Member ID. Those who have not received this information can reach out to the settlement administrator for assistance.
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The deadline to submit a claim form is October 27, 2024, and an exclusion and objection deadline has already passed on September 27.
Payment Information
Eligible claimants can expect to receive a payment of $10 each. They can choose to receive their payments via check, electronic payment, or as store credits on Hot Topic’s website. A final hearing for the case is scheduled for November 4, and the funds are expected to be distributed shortly after this date.
Hot Topic is not alone in facing legal challenges this year; several other retailers, including Walmart and Costco, have also resolved class action lawsuits related to overcharging, with Walmart agreeing to a $3.8 million settlement and Costco distributing payments from a $3.875 million settlement.
