Chicago, IL: Babies "R"Us is facing a consumer fraud class action lawsuit over allegations its rewards program was misleading and misrepresented what consumers actually receive when purchasing items from the retailer.
Filed by Stacy Tongate, the lawsuit claims that the Endless Earnings program promoted and run by Babies "R" Us offers shoppers up to 10 percent back on registry items purchased. The program, the lawsuit contends , is run in order to attract more customers to use the baby registry services.
According to the complaint, the popular children' toy store launched the program in April 2014, offering benefits with no limits. However, The company in fact offers five percent of the first $300 spent by consumers. After the first $300, consumers are bumped up to 10 percent, Tongate claims.
The lawsuit is seeking class status for those who made purchases during the Endless Earnings program's duration. The lawsuit is also asking for approximately $5 million in damages plus court costs. The lawsuit is United States District Court for the Northern District of Illinois case number 1:15-cv-02286.
Tongate is represented by Michael L. Silverman, Gregg M. Barbakoff and Matthew D. Savin, of Spirut, PC in Chicago.