Aug 18, 2008 5:47 pm US/Pacific
Cosmetic Lawsuit Means Free Makeup And Perfume
SAN FRANCISCO (CBS 5) ―
A legal fight continuing for more than a decade is finally coming to a close with consumers ready to collect millions of dollars worth of free cosmetics from big name department stores.
You are eligible if you bought from a long list of department store brands between May of 1994 and July of 2003. You do not need a receipt or proof of purchase, but you have to sign up if you want to be notified of when the giveaway begins.
The price of beauty was set too high according to a class action lawsuit.
It accused department stores and manufacturers of conspiring to never offer discounts on high end perfumes and cosmetics. Brands include Chanel, Calvin Klein, Vera Wang, MAC, Aveda, Lancolm, and many more. The settlement means anyone who says they bought these products at stores like Macy's, Nordstrom, Neiman Marcus can collect $175 million in free products.
Long lines are expected to form around dozens of department stores involved in the lawsuit starting in January. The defendants denied any wrongdoing but agreed to this settlement four years ago. However, objections from San Francisco attorney William Abbott delayed the payout.
"It's a publicity stunt. The giveaway will be huge at $175 million of free costmetics. There will be big ads. It'll be like a horror show. And it's not going to help the consumers who bought these products on a regular basis. The busy professional woman is not going to stand in a long line," said Abbott.
He said the class action attorneys get $25 million, people willing to stand in line will each receive $25 in products, but ultimately he said consumers lose out because it'll be business as usual.
"Department stores and cosmetic companies never admitted to doing anything wrong," said Abbott. "They did not agree to stop doing anything they were accused of doing. The settlement specificly states that the department stores and cosmetic manual will continue their current business practices."
One of those practices is coordinating bonus gift promotions so different stores each get a turn, and don't have to compete by offering additional discounts. He said the manufacturers put pressure on stores to sell products at a manufacturers suggested retail price and guaranteed if products didn't move off shelves, they'd buy back items thus preventing the need to slash prices to sell.
To sign up for information about the settlement,
click here.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Sign Up To Receive Settlement Information
U.S. House Passes Health Care Reform Bill 16 mins ago 
Stumble It!
Reporting
Comments