A popular baby supplies store was sued on March 16 over allegations its rewards program was misleading and misrepresented what consumers actually receive when purchasing something from its stores.
Stacy Tongate filed the lawsuit against Babies R Us over its Endless Earnings program. The lawsuit alleged the program offers shoppers up to 10 percent back on registry items purchased in order to attract more customers to use the baby registry services.
Tongate said the company launched the program in April 2014 and offered the benefits with no limits.
The suit alleged that the rewards reflect only a fraction of the amount that consumers are contractually entitled to.
The company allegedly offered 5 percent of the first $300 spent by consumers. After the first $300, consumers are bumped up to 10 percent.
The lawsuit is seeking class status for those who made purchases during the Endless Earnings program's duration. The suit is also asking for approximately $5 million in damages plus court costs.
Tongate is represented by Michael L. Silverman, Gregg M. Barbakoff and Matthew D. Savin, of Spirut, PC in Chicago, Illinois.
United States District Court Court for the Northern District of Illinois case number 1:15-cv-02286.