Money-Back Guarantees Unlikely To Satisfy 'Superiority'

Law360, New York (August 5, 2014, 10:47 AM EDT) -- In an attempt to quash consumer class actions at the class certification stage, product manufacturers defending against such suits have recently stepped-up arguments that their own money-back guarantee refund policies provide consumers with a superior method for obtaining financial redress and that class certification is therefore inappropriate pursuant to Fed. R. Civ. P. 23(b)(3).[1] Specifically, defendants have argued that because they already offer to provide dissatisfied customers with a refund, a class action cannot be deemed “superior to other available methods for fairly and efficiently adjudicating...
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