Class action rebates involve compensation (or money) a group of people receives after jointly suing a company in a class action lawsuit. The company being sued is responsible for selling consumers a broken or dangerous product or are responsible for the false advertising of one of their products. In an effort to make up for selling their customers the defective product, companies agree to give the group (or class) a large sum of money that is then divided up and mailed to each participant in the class action lawsuit if the consumers’ case is won in court.
How it Works
The main plaintiff, along with a lawyer or lawyers, go to court representing a whole group of people in a class action lawsuit in an attempt to win compensation for them because they each purchased a defective product from the company being sued. If the class wins, each person that was a part of the lawsuit gets a share of the money from the company in the form of a partial refund. The money received is called the class action rebate. There are class action rebates for many types of products, such as toys, food, medications, pet supplies, as well as many others.
An example of a product that would be considered defective is a teddy bear whose eye pops off easily. This is considered a choking hazard, which is dangerous to a young child. Or, a product that is advertised as being healthy for kids, yet is full of sugar and preservatives is an example of false advertising. Companies must take responsibility for what they advertise and sell their customers, or they may have to face charges in court.
Basics about Class Action Rebate Claims
- Don’t typically need a receipt to file
- With the exception of the main plaintiff, people involved are not called into court to testify
- A cheaper way for the group to sue as a whole
- Easy to join – costs nothing to fill out the form and send it in
- If case is won, the amount won is relatively small
Filing for a Class Action Rebate
Find products involved in class action lawsuits:
- In commercials – Call the number given on television for more information.
- Online at places such as Class Action Rebates.
- Mail – Postcards are mailed out telling people about defective products currently involved in class action lawsuits.
Once you’ve found a product:
- Fill out a claim form online and send it or print it out and mail it to the address given on the form.
- If your case is won, your group will receive a share of the class action rebate. However, it should be noted that not all cases win. Also, companies don’t often know which people should receive a rebate check, so money is left without anyone to claim it at times as well.