Federal law prohibits a retailer from selling a gift certificate with an expiration date that is less than five years from that date of sale. Halunen Law is investigating whether LivingSocial has violated the law by selling gift certificates online that contain expiration dates shorter than 5 years from the date of sale.
In the past several years, LivingSocial has sold thousands of gift certificates that purport to expire in a matter of months. Under many state laws and under federal law, companies cannot sell gift certificates subject to an expiration date or service fee of any kind. The investigation may result in a lawsuit that seeks to recover the money customers lost as a result of LivingSocial’s alleged illegal conduct, money for the expected value of the gift certificates they purchased, and prevent LivingSocial and its retail partners from selling gift certificates will illegal expiration dates.
Update (May 9, 2013)
The Court granted final approval of the Settlement on March 22, 2013. However, appeals to the Court’s Final Judgment have been filed, which will take additional time to resolve. The parties therefore cannot predict at this time whether and when the Settlement will become final or if settlement payments to Authorized Claimants will be issued.
Please visit livingsocialvouchersettlement.com for updates. Thank you for your patience.
Overview Of The Proposed Settlement
In Re: LivingSocial Marketing and Sales Practices Litigation, Case No. MDL 2254
A settlement (“Settlement”) has been proposed in a class action lawsuit pending in the United States District Court for the District of Columbia (“Court”) titled In re LivingSocial Marketing and Sales Practices Litigation, Case No. 11-MC-00472-ESH-AK (“Action”).
If the Court gives final approval to the Settlement:
- LivingSocial will create a fund of $4,500,000 from which each Settlement Class Member who submits a timely and valid Claim Form may receive monetary relief for a LivingSocial Deal that has expired, has not been redeemed and has not been refunded.
- Settlement Class Members each have the ability to recover a pro rata share of that fund up to 100% of the amount they paid for any LivingSocial Deal Voucher that they still hold and have been unable to redeem.
- Any funds left over after payment of Settlement Class Members’ claims will be distributed to the National Consumers League and Consumers Union, which are both not-for-profit organizations that represent consumers on marketplace and technology issues, among other things.