CHICAGO (CN) - A class claims Toys "R" Us's baby store division is shortchanging expectant parents through a misleading baby registry rewards program.
Stacy Tongate sued Toys "R" Us Inc. doing business as Babies "R" Us and Toys "R" Us-Delaware Inc. in Federal Court individually and on behalf of others similarly situated. The lawsuit alleges breach of contract and fraud.
Tongate says that the Babies "R" Us "Endless Earnings" program is deceptive. The program offers customers up to 10 percent back for purchases made from their baby registries but the plaintiffs claim that's not true.
"Unfortunately, those who register for the program soon discover BRU's tantalizing offer of "Endless Earnings' is little more than empty rhetoric," the complaint states. "Indeed, consumers throughout the country have complained of receiving rewards that reflect only a fraction of the amount to which they are contractually entitled."
Customers began complaining shortly after the Endless Earnings program was implemented, according to the complaint. The class action alleges Babies "R" Us does not calculate rewards using the formula in the program contract.
"When contacted by customers regarding their missing rewards, however, BRU refuses to provide information on how their particular rewards were calculated," the complaint states. "Making matters worse, BRU even goes so far as to tell those registrants that it cannot provide the total value of qualifying purchases made from their registries."
Tongate says she registered for Endless Earnings in 2014 and more than $3,400 in qualifying purchases were made from her baby registry but she only got $160 on a gift card, not the $328 the contract's formula provided for.
"Plaintiff contacted BRU on numerous subsequent occasions in the hopes of reaching a supervisor (or any BRU employee, for that matter) that could explain the shortfall in her rewards. On each occasion, BRU claimed that it could not provide plaintiff with the information she requested," the complaint states. "On or around February 18, 2015, BRU sent plaintiff an additional eGift card for $144 in rewards. But even when factoring in this additional amount, BRU still owes plaintiff approximately $23 in rewards. Importantly, BRU did not provide plaintiff with any explanation as to the $23 shortfall, nor has it explained the true method by which it calculated her rewards."
The lawsuit proposes two related classes. The participant class includes Americans who have created a Babies "R" Us registry since April 2014 and who did not received a full measure of their earned rewards. The purchaser class includes Americans who meet that same criteria but who also purchased a product from their own registry and did not receive a rewards calculation.
The complaint seeks treble damages and attorney fees.
The class is represented by Michael Silverman of Siprut, P.C. in Chicago.
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