Fast-food chicken chain Chick-fil-A has reached a settlement in a class action lawsuit, agreeing to pay customers $4.4 million in rebates or gift cards. The lawsuit was filed after the restaurant lowered delivery fees but increased the prices of the delivered food without notifying users.
Chick-fil-A will establish a $1.45 million cash fund and a $2.95 million gift card fund for consumers, according to Top Class Actions, a highly regarded site that closely follows legal cases. While the company did not admit any wrongdoing, this settlement aims to compensate customers who were affected by the price discrepancy.
Allegations and Deception
The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, accused Chick-fil-A of being "deceptive and untruthful" by advertising free or low-priced deliveries during the COVID-19 pandemic through their app and website. However, the restaurant failed to inform users that the items in these deliveries were priced higher. In some cases, the prices were up to 30% more than if purchased in-store.
According to the suit, Chick-fil-A secretly increased its menu prices for delivery orders to cover delivery costs and profit, without disclosing this manipulation to customers.
Compensation for Overcharged Customers
Customers who believe they were overcharged during this period can visit the Top Class website for more information. As part of the settlement, an unspecified number of customers are expected to receive either a cash payment of $29.25 or a gift card of the same value from Chick-fil-A. If the settlement fund is insufficient to cover all claims, payments will be distributed proportionately.
Transparency Moving Forward
To ensure greater transparency, Chick-fil-A has agreed to include disclosures on its app and ordering site. These disclosures will notify customers that prices on menu items may be higher for delivery orders compared to in-store prices. This commitment aims to prevent similar misunderstandings in the future, as reported on the claims site.
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