Class Action

Class Actions Explained

There are many times throughout the day in which we interact with businesses that simply don’t treat us fairly. Sometimes they take so much from us that we fight back and sometimes they only take a little bit from us and we simply let it go.  What many consumers don’t realize is that for many businesses, they intentionally pick these areas where you are most likely not to object to increase their bottom line.

For clarity, let’s illustrate a common example.  Let’s say you pay for a monthly water service where they deliver purified water to your house. You sign a 1-year contract with them where you agree to pay them $10 per month for this service.  In month three for example, they add a mileage charge or any charge you can’t understand of $1 making your total $11 per month.  Most likely, your not going to object.  The amount of time it would take to argue with them over the phone for $1 is not worth it to you.  However, this company just charge $1 more per customer – if they have 1 million customers – they just increased their monthly revenue by $1 million per month.  If none of the consumers speak out, then this company is quietly making greater profits because it was too insignificant for any one consumer to object.

Class actions were created to protect consumers against such nefarious practices by businesses.  Class actions rely on one consumer to stand up against the company and help all the other consumers who were cheated out of their money to recover.  Often times, the court will award an extra incentive payment to this lead plaintiff for his time and energy in volunteering to stand up against the company on behalf of everyone else.  Ultimately, this little guy was able to help every other consumer affected by this business to be rightly compensated.

This is one example which shows why class actions are so important.  Without class actions, businesses will prey on stealing tiny amounts from consumers just enough to be profitable but not enough that the consumers will object en masse.  Through the strength of one consumer, he can right the wrong of a nefarious business from stealing from its consumers.

If you would like to bring a class action against a business for their unfair or deceptive practices, then please contact us at (877) 333-9427 or [email protected].