Molnar v. 1-800-Flowers

CHR

Design matters
Nov 28, 2002
8,951
8,442
113
Anaheim
www.avantegardens.com
State / Prov
CA
From http://www.molnarsettlement.com/

If you purchased products through 1-800-Flowers.com, Inc. or 800-Flowers, Inc.'s (erroneously sued as 1-800-Flowers Retail, Inc.) (hereinafter referred to as “Defendants” or “1-800-Flowers”) website, which noted a “shipping charge” and which products were delivered by local florists, during the period from March 1, 2006 through February 5, 2008, you may be entitled to benefits from an action pending in the California Superior Court for the County of Los Angeles an action entitled Molnar v. 1-800-Flowers Retail, Inc., Case No. BC 382828 (the “Action”).



Plaintiff Thomas Molnar (hereinafter referred to as “Plaintiff”) filed a class action lawsuit against 1-800-Flowers on behalf of himself and all Class Members. Plaintiff’s law firm is Westrup Klick, LLP (“Class Counsel”) and that firm represents Plaintiff and the Class Members.


The lawsuit alleges that 1-800-Flowers made misleading statements and omitted information concerning the shipping and delivery charges associated with certain online purchases of floral products. Specifically, Plaintiff alleges that he and other similarly-situated consumers were either charged for a service they did not receive, i.e. shipping, or were charged and paid for delivery twice – once as a “shipping charge” despite that the floral arrangements were hand delivered by a local florist, and once as a delivery charge that was built into the merchandise price of the product. Plaintiff alleges Defendants’ violation of certain New York General Business Law provisions, along with common law counts. 1-800-Flowers denies these claims, and denies that it has done anything wrong.
What Does the Settlement Provide?

For those Class Members who do not timely opt-out of the settlement, and upon the Court’s final approval of the settlement, you will be entitled to receive a $10 Gift Voucher for each qualifying online purchase you made from the www.1-800-Flowers.com website during the period March 1, 2006 through February 5, 2008. Each Voucher is valid for a single online purchase made at www.1-800-Flowers.com and usable at time of checkout. The $10 Gift Voucher is subject to the terms and conditions described in the Notice or Frequently Asked Questions on this website.
What Are My Options?

Receive and Use the $10 Gift Voucher. Upon the Court’s final approval of the settlement, eligible Class Members will be entitled to $10 Gift Voucher towards a purchase at www.1-800-Flowers.com by entering the “Gift Voucher Code” at time of check out (See your individual Gift Voucher Code or Codes on the Summary Notice eligible Class Members received). Each $10 Gift Voucher shall be effective for a six (6) month period after Final Judicial Approval of the settlement. Please continue to check this website to determine (i) whether and when Final Approval is granted, and (ii) the exact dates of the Redemption Period for the $10 Gift Voucher.



Exclude Yourself From the Settlement. If for some reason you desire to exclude yourself from the settlement, you may do so by mailing a request to “OPT OUT,” postmarked no later than February 22, 2010. If you timely and validly request exclusion from the Class, you will be excluded from the Class; you will not receive any benefits from the settlement; you will not be bound by the judgment entered in the Action and you will not be precluded from otherwise prosecuting any individual claim, if timely, against 1-800-Flowers based on the transactions complained of in the Action. For details on how to exclude yourself from the settlement, please consult the Notice or Frequently Asked Questions on this website.
Object to the Settlement. If you decide to appear and object, you must file and serve your written request to appear and object with the Court, and upon Counsel for all of the parties February 22, 2010. You must serve all such notices and papers upon Class counsel and Defendants’ counsel at the addresses listed in the Notice or Frequently Asked Questions on this website.
Final Fairness Hearing

A final hearing will be held before Judge Zaven V. Sinanian, of the Los Angeles County Superior Court, on March 29, 2010 at 8:30 a.m., to determine whether the proposed settlement is fair, reasonable and adequate and should be finally approved. The hearing will take place at the Los Angeles County Superior Court, in Dept. 23, located at 111 North Hill Street, Los Angeles, CA 90012. You do not need to attend the hearing in order to participate in the settlement.
Westrup Klick, the law firm behind this suit, contacted me to be a witness after they found the letter we FC members sent to the FTC regarding 1-800's false claims of Free Delivery. After checking out the firm, I declined to participate.

It looks like this lawsuit mill is going to get a nice payday from 1-800 to go away. Consumers will only get $10 off a future purchase from 1-800. Ugh.

Why aren't the good law firms every interested in pursuing these cases? (You don't have to answer that...)
 
From the website, here's the pay-out:
Who is the Plaintiff and will he be compensated?

The Parties agreed that, subject to the Court’s final approval, the named Plaintiff, Thomas Molnar, shall be entitled to an incentive award of up to $5,000 in recognition of the risk to Plaintiff as the Class representative in commencing the lawsuit in the Action, both financial and otherwise; the amount of time and effort spent by Plaintiff as the Class representative; and for serving the public interest.


How will the attorneys involved be paid?

The Parties agreed that, subject to the Court’s final approval, Class Counsel shall be entitled to an award of attorneys' fees and costs of up to $400,000. The payment of attorneys’ fees will not affect the benefits provided to the Class Members.
Emphasis mine.

You can contest the settlement, but I don't think local florists are a part of the class.
 
I wonder if they would go to the filling florists for lack of processing the "shipping fees" directly to the shop that did deliver? Hmm, that could make for an interesting class action - I have 10 years worth of records......
 
1-800 claims the case as no merit, yet they are apparently willing to settle for about $6 million in direct costs and discounts.

They told consumers delivery was 'free'. It wasn't.

The bigger question is 'how many consumers were diverted from local florists and other competitors under the ruse of 'free delivery?

IMO it cost us all tens to hundreds of millions so $6 million to make it go away is a bargain.

There's smoke, there's fire, but this law office was only interested in the class action cash settlement they'd receive.
 
1-800 claims the case as no merit, yet they are apparently willing to settle for about $6 million in direct costs and discounts.

They told consumers delivery was 'free'. It wasn't.

The bigger question is 'how many consumers were diverted from local florists and other competitors under the ruse of 'free delivery?

IMO it cost us all tens to hundreds of millions so $6 million to make it go away is a bargain.

There's smoke, there's fire, but this law office was only interested in the class action cash settlement they'd receive.

what's the likelihood, that potential customers, of sites like 1800, now READING and paying ATTENTION to the order process, and "objecting" to some of it's methodology??
 
Someone needs to contact the plaintiff, and let him know that the $10.00 is actually $14.95, or does WS math apply here too ;)

The good thing is, maybe this will raise awareness of this huge issue.

The bad thing is, $10.00 "coupons" can only be used at 800.coN and will result in more purchases. However, time will tell if 800F changes their verbiage on their site(s) and actually has to at some point in the future send that money along with the order.
 
01/08/2010
 
Thank you for choosing 1-800-flowers.com. A representative will be with you shortly.
You are now chatting with Chantelle.
Chantelle: Hello! How can I help you with your order today?
You: how much will it's all about you arrangement cost the week of valentines?
Chantelle: The It's All About You arrangement will stay the same price. The rose elegance arrangements will go up in price to about $75 before Valentine's Day.
You: but this arrangement has 5 red roses in it. So how can it cost so little?
Chantelle: The mixed arrangements will all stay the same price even if they include some roses. It is only the all rose arrangements that rise in price during Valentine's Day.
You: so tell me how much the roses are each in this arrangement
Chantelle: Our single roses are $5.99 but it doesn't apply to the mixed arrangements that have roses in them. Those already have their own set price.
You: which is?
Chantelle: The prices are listed to the right of each arrangement when you click on it.
You: so I guess I am trying to figure why is the rose arrangements 5.99 each totally 71.99 that does not include the greenery or vase plus delivery. Please explain this.
Chantelle: The roses include fresh greens and a vase.
You: so you are telling me that the vase and greenery and delivery are basicslly free
You: what a deal
Chantelle: Yes, the vase and greenery come with the rose arrangements.
You: is this an arrangement that is delivered by a local florist or put in a box and mailed
Chantelle: It's All About You and the Rose Elegance arrangements are all delivered by a local florist.
You: I need this possibly sent to charlottesville, VA...how many florist do you have there.
Chantelle: We have about 5 that we use in the area.
You: I would like to know which they are, because I would like to chose which one you send it to
Chantelle: We are unable to give out specific florist information. We can relay messages to them for you.
You: well I guess i can google the area and locate a florist directly and than ask you if they are a member, can i do that? Because I send alot of flowers I just want to make sure this is going to the best florist there. Check and see if The Flower Shop located on High Street is a member? I hear they are the best!
Chantelle: The order will automatically be sent to one of the florists in our system once it is sent though. I cannot be sure which one your order would be assigned to.
You: So than how are they assigned, that makes no sense to me, I am the customer.
You: or are you telling me you own the florist
Chantelle: We have multiple florists for each zip code in our system. When an order is placed it is automatically sent through to one of those florists. The system will automatically send it to one of the florist in our system.
You: is there a fee for doing this and how much? On top of the flowers?
Chantelle: In addition to the price of the arrangement there is a $14.99 service charge.
You: what is this service charge for?
Chantelle: It is the delivery charge for our florist delivered items.
You: they charge that much for delivery?
Chantelle: Yes. The UPS/Fedex delivered items have delivery charges as well.
You: but this is not a mailed arrangement I thought you said it was delivered by a florist. I am really confused now. Please explain!
Chantelle: All of our items have delivery charges. The florist delivered items that you want to send have a $14.99 charge.
You: like I asked before the florist charge that much in delivery?
Chantelle: Yes.
You: so than this florist will receive my $14.99 for delivery and $49.99 for the arrangement?
Chantelle: Yes.
Chantelle: Is there anything else I can help with?
You: I will check with the local florist and check and see if I can get a cheaper delivery fee. But thank you.
Chantelle: You're welcome.
Chantelle: Thank you for chatting with 1-800-Flowers.com. We value your feedback. Please click the “CLOSE” button at the top right to answer a few questions about your experience with us today.
Thank you for chatting with us. Please click the "Close" button on the top right of the chat window to tell us how we did today.

This is what I found the other day after going to 1800flowers.com and chatting live with a consultant. The above is a converstion I had while just looking at some of the flowers they were offering for Valentines Day. This made me very angry! I have never received that much in delivery. Any time I ask for more delivery when really needing it. 1800 would cut me off and no more orders for awhile.
 
I would fall over in a dead faint if they had ever sent a 14.99 delivery charge...actually last MD, they sent me an order..their purple plum for 29.99 going way out west where I normally charge 14.99...I ask for 10 more...some smart ass told me I "had to take the order"..."say what"..yep good ole Micheal at 800 flowers said if I didnt take, since I was a partner with them, he would report me to his supervisior". We called our National Rep and quit 30 mins later.A bunch of nutballs....Been better off since then ...
 
I have never received that much in delivery. Any time I ask for more delivery when really needing it. 1800 would cut me off and no more orders for awhile.
I've had the exact experience, with ZERO orders for the week of Christmas, so we terminated our membership. Good questions to trap them into lying about these fees. They will eventually hang themselves. I expect their business to only get worse - get out now, it's not worth hanging around.
 
I've had the exact experience, with ZERO orders for the week of Christmas, so we terminated our membership. Good questions to trap them into lying about these fees. They will eventually hang themselves. I expect their business to only get worse - get out now, it's not worth hanging around.

can ZERO orders to your shop mean you've been "non-compliant", or do you think maybe, the consumer is catching on to the "costs" associated with the middleman??
Let's face it, we too have been surprised by the uptake of walkins, and grab & takes, just to sidestep our delivery charges, in an effort to save some money...let's hope it's the floral CUSTOMER, that is "denying" YOU 1800 orders....
 
A blogger kind-of gets the nature of this lawsuit, but not really.... "I Won $20?" Am too tired tonight to explain it all to her, but hope to get to it.

Thankfully, About.com gets it right.
Why This is a Bad Marketing Move for 1-800-Flowers.com

Customers who have been overcharged by any company deserve an apology and a refund. Providing credits for future purchases is a tremendous disservice to customers who were ripped off by 1-800-Flowers.com in the past. In order to get back money for being unfairly and deceptively overcharged, they must now spend even more money.
What she said! The comments to her post are enlightening, too.

They deceived consumers to get the orders, and now in order to get compensation, customers have to give them more money. And the $10 vouchers cannot be used during V Day or M Day.

No wonder people stop sending flowers. The name brands keep making us all look bad...
 
oh I can hear (see) another blog post coming.......(by me that is)
 
BOSS's Quote of the day!

No wonder people stop sending flowers. The name brands keep making us all look bad...
And popular belief is that it's "us" causing the decline in sales ;)
 
I posted about the class action lawsuit on the Real Florist blog. Free Flower Shipping: Molnar v. 1-800-Flowers

The article outlines why the suit matters to local florists, the history of itemizing fees, and also discusses other companies using 'free' when it's not true.

Hope you'll have a look and link to the article.
 
Hi Cathy,

Thank you for that blog, it is clear and precise, and should be easy for the average consumer to understand. Best of all, it does not make the florist into a "whiner", it points out the damage done to consumers.
 
can ZERO orders to your shop mean you've been "non-compliant", or do you think maybe, the consumer is catching on to the "costs" associated with the middleman??
Let's face it, we too have been surprised by the uptake of walkins, and grab & takes, just to sidestep our delivery charges, in an effort to save some money...let's hope it's the floral CUSTOMER, that is "denying" YOU 1800 orders....

I like to think, with all of the twittering about this lawsuit, that the consumer is being educated. And they (1800) are still at it, offering "Free Shipping/No Service charge for V-day weekday deliveries", and asking member florists to suck up 40% of the 14.99 they're giving away, on top of a discounted order. Are they "for real"?
 
I like to think, with all of the twittering about this lawsuit, that the consumer is being educated. And they (1800) are still at it, offering "Free Shipping/No Service charge for V-day weekday deliveries", and asking member florists to suck up 40% of the 14.99 they're giving away, on top of a discounted order. Are they "for real"?


and they are calling offering $69/month to join the club. NADA