Coronavirus Spawns Class-Action Lawsuits as Consumers Seek Refunds
TruthInAdvertising.org 14 May 2020
The pandemic has also triggered lawsuits over privacy issues with some video conferencing apps, and more.
 
Remember plans? If you don’t, here’s a refresher: Plans were appointments you were always tempted to cancel — usually at the last minute — but then when you went through with them, you were (mostly) happy you didn’t back out.
 
The coronavirus has disrupted all aspects of American life. This includes plans Americans made to go to the gym, hop on an airplane, attend concerts and sporting events, and even finish their spring semester at college. Now, consumers are seeking refunds through class-action litigation for the things they had planned — and paid — to do before COVID-19 essentially shut down the country.
 
Here’s a breakdown of the types of refunds cases, followed by a list of the more than 50 class-action lawsuits related to reimbursement and the coronavirus TINA.org is tracking.
 
(Note: College students and some gym members are only looking to recoup a portion of their expenses, spring semester tuition and monthly membership fees, respectively.)
 
 
Flights
 
 
Tickets to Live Events
 
 
Colleges and Universities
 
 
Membership Fees (gyms/clubs)
 
 
Other
 
 
But wait, there’s more…
 
The coronavirus pandemic has also led to class-action lawsuits involving the alleged false advertising of hand sanitizers, as well as cases that deal with privacy issues, securities violations, price gouging, and more. While some plaintiffs are seeking cash refunds, others are requesting declaratory judgments that would define the relationship and rights of parties in legal matters. An overview of additional coronavirus-related class-action lawsuits follows.
 
Hand sanitizers
 
Consumers have filed lawsuits challenging advertising claims that hand sanitizers prevent illnesses, diseases and infections, including the coronavirus. Plaintiffs claim that companies do not have adequate scientific evidence to support such claims. Some of the complaints also allege that companies do not have FDA approval for these claims. Brands named in the complaints include Purell, Germ-X and Up & Up, a Target brand.
 
 
Privacy issues
 
Millions of people practicing social distancing are using video conferencing and social networking apps to communicate with family, friends and colleagues. At least two apps providing such services are currently facing class-action litigation over privacy concerns.
 
The complaints allege that the Zoom and Houseparty apps share data collected from users without their consent.
 
 
Securities violations
 
Under federal securities law, it is unlawful to make false statements, omit material facts, or use fraud and deceit in the sale of securities such as stocks and bonds. Investors have filed class-action lawsuits alleging that companies violated securities laws by making false claims related to the coronavirus pandemic. One complaint against Inovio Pharmaceuticals alleges that the CEO of the Pennsylvania biotechnology company falsely claimed that it had developed a vaccine for COVID-19 (see our ad alert here). Two class-action lawsuits allege that Norwegian Cruise Lines misrepresented in SEC filings the impact that the pandemic would have on its business. Plaintiffs also allege that Zoom falsely represented to investors that it protects the personal identifiable information it collects from users.
 
 
Price gouging
 
Retailers and others in the supply chain have been hit with price gouging lawsuits during the coronavirus pandemic. Price gouging occurs when retailers charge unreasonably high prices for necessities due to a spike in demand caused by an emergency or disaster, such as a pandemic. One price gouging complaint filed against multiple retailers – including Amazon, Trader Joe’s, Walmart and Whole Foods – claims that the price of eggs “nearly tripled between the onset of the COVID-19 pandemic and the end of March.” Another price gouging complaint alleges that Amazon’s prices for certain goods – including face masks, pain relievers, cold remedies, black beans, flour and disinfectants – drastically increased after California officials declared COVID-19 a public health emergency.
 
 
Small businesses suing insurance companies 
 
Small businesses ranging from restaurants to furniture stores to dental offices, which were ordered to close or reduce business under stay-at-home mandates, have filed lawsuits seeking declaratory judgments that business losses and expenses resulting from COVID-19 are covered by their insurance policy.
 
 
Find more of our coverage on the coronavirus here.
 
Comments
gcmbinty.37
6 years ago
As one of the leading consumer activist of India seeking variety of refunds in a class suit against Union of India, I am further advising my advocates to work on the new field of protecting consumer interests caused by COVID-19. My request to alert consumers to provide their informed inputs to me on email id [email protected], on the issues of reimbursements of expenses incurred on services including plans Indians made to go to the gym, hop on an airplane, attend concerts and sporting events, and even finish their semester at college. Now, consumers will be seeking refunds through class-action litigation for the things they had planned — and paid — to do before COVID-19 essentially shut down the country.
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