Kahn v. Walmart
U.S. District Court for the Northern District of Illinois
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Case: Kahn v. Walmart
Court: U.S. Court of Appeals for the Seventh Circuit
Date: September 22, 2023
Issue on Appeal: Whether an inadvertent inconsistency between a product’s shelf price and the point-of-sale price charged is sufficient to state a claim for misrepresentation in violation of Illinois consumer protection statutes, despite the presence of the sale price on a receipt.
RLC’s Position: Product pricing in the real world is complex and fast moving, leading to an inevitability that some error may occur between product pricing displayed on a shelf and pricing updated in an electronic sale system. Because of this, retailers employ many safeguards to ensure pricing is accurate and/or consumers have all the information possible to ensure they are aware of the point-of-sale price. Courts have correctly recognized that the use of these safeguards dispels any alleged deception or unfairness when errors do occur. Moreover, authorizing strict liability class actions over pricing discrepancies would upset the regulatory system, impose an impossible standard, and result in an extraordinary burden to courts, retailers, and their employees. Accordingly, the Seventh Circuit should affirm the District Court’s dismissal of the complaint.
Other Amici: The Retail Litigation Center led a coalition of amici including the National Retail Federation, FMI – The Food Industry Association; and Illinois Retail Merchants Association.
Counsel: Amy Turk and Matthew Fitzgerald of McGuireWoods.
Court: U.S. Court of Appeals for the Seventh Circuit
Date: September 22, 2023
Issue on Appeal: Whether an inadvertent inconsistency between a product’s shelf price and the point-of-sale price charged is sufficient to state a claim for misrepresentation in violation of Illinois consumer protection statutes, despite the presence of the sale price on a receipt.
RLC’s Position: Product pricing in the real world is complex and fast moving, leading to an inevitability that some error may occur between product pricing displayed on a shelf and pricing updated in an electronic sale system. Because of this, retailers employ many safeguards to ensure pricing is accurate and/or consumers have all the information possible to ensure they are aware of the point-of-sale price. Courts have correctly recognized that the use of these safeguards dispels any alleged deception or unfairness when errors do occur. Moreover, authorizing strict liability class actions over pricing discrepancies would upset the regulatory system, impose an impossible standard, and result in an extraordinary burden to courts, retailers, and their employees. Accordingly, the Seventh Circuit should affirm the District Court’s dismissal of the complaint.
Other Amici: The Retail Litigation Center led a coalition of amici including the National Retail Federation, FMI – The Food Industry Association; and Illinois Retail Merchants Association.
Counsel: Amy Turk and Matthew Fitzgerald of McGuireWoods.
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