JCPenney To Make $50 Million Available To Settle Lawsuit
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NEW YORK (AP) - JCPenney said Wednesday that it will make $50 million available to settle a false advertising class-action lawsuit.
The lawsuit, which was filed in 2012, took issue with the price comparison advertising of private and exclusive branded products that JCPenney used in California between November 2010 and January 2012. The lawsuit claimed the retailer's practices didn't comply with California law.
JCPenney denies the allegations and said it entered the settlement to end the uncertainties, burden and expense of further protracted litigation.
As part of the settlement, class members — which are California customers who bought certain JCPenney private or exclusive branded products — will have the option of a cash payment or store credit. The amount of the payment or credit will depend on the total amount purchased by each class member during the class period.
The settlement also involves JCPenney implementing or continuing with certain improvements to its price comparison advertising policies and practices, including periodic monitoring and training programs designed to ensure compliance with California's advertising laws.
The settlement is subject to approval by the U.S. District Court for the Central District of California.
JCPenney Co., based in Plano, will report its third-quarter financial results on Friday.
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