Franchising & Distribution Law Blog

The enforceability of class action waivers in arbitration provisions has been debated for years in courts across the country, including in several cases before the United States Supreme Court. This week, Congress weighed in on the ongoing debate. 

The holiday season is upon us. For many retailers, that means gift card sales are about to explode, which is great news. Not only can gift card sales help generate new customers, but industry data continues to confirm that consumers often never use some portion of their gift card balance, which can ultimately result in additional breakage profit.

A California judge dismissed a class action lawsuit against MillerCoors that alleged deceptive advertising related to the brewing conglomerate’s Blue Moon beverage — specifically its status as a “craft” beer.

In Evan Parent v. MillerCoors LLC, Case No: 3:15-cv-1204-GPC-WVG (S.D. Cal. Oct. 26, 2015), the plaintiffs alleged that MillerCoors was deceiving consumers by (a) advertising Blue Moon on its website as a “craft” beer, and (b) advertising it as “artfully crafted” and brewed by the Blue Moon Brewing Co. on bottles and commercials, then selling it at premium prices.

A recent decision in California highlights that retailers’ practice of collecting zip codes continues to be challenged. California’s Second District Court of Appeals affirmed summary judgment in a case brought as a class action against Chevron and other motor fuel retailers alleging violation of California’s Song-Beverly Credit Card Act for the collection of customers’ zip codes in conjunction with credit card transactions at gasoline stations.

A former McDonald’s employee has brought a class action lawsuit against the franchisees of 16 McDonald’s locations in Pennsylvania (the franchisor is not named in the suit), claiming their practice of paying employees via mandatory payroll debit cards is unfair and illegal.