class actions, disabled rights, copyright, attorneys general, online speech, law schools, obesity, New York, mortgages, legal blogs, safety, CPSC, pharmaceuticals, patent trolls, ADA filing mills, international human rights, humor, hate speech, illegal drugs, immigration law, cellphones, international law, real estate, bar associations, Environmental Protection Agency, First Amendment, insurance fraud, slip and fall, smoking bans, emergency medicine, regulation and its reform, dramshop statutes, hotels, web accessibility, United Nations, Alien Tort Claims Act, lobbyists, pools, school discipline, Voting Rights Act, legal services programs


« Prosecuting the innocent, without consequences | Rail union head got FELA kickbacks »

March 24, 2004

Remedy for sending coupons: send more coupons

In the latest from the world of junk fax litigation (see Jul. 19, 2003, and links from there; Dec. 8), the bowling company AMF Bowling Centers has agreed to give out up to $1 million cash and $1.5 million in coupons to settle a class action alleging that it sent out as many as 352,000 unsolicited faxes. In addition, attorneys Lance McMillian and Stephen Camp of McMillian & Camp in Newnan, Ga. "will get a total of $250,000, while the lead plaintiff, James Michael Moore of Satellite Specialists in Jonesboro, will get $15,000." AMF agreed to pay $500 to class members who actually kept a copy of an offending fax, while those who merely swear in an affidavit that they received one will get a less exhilarating prize, $250 in bowling coupons. Critics of the settlement say AMF is getting off too easily: under the terms of federal law, the company might have been liable for fines of between $176 million and $528 million if the charges were proven (see Oct. 22, 1999 for more on this calculus). Another Georgia attorney who had settled lawsuits with AMF over 141 junk faxes sent to his clients was also critical of the coupon aspect: "Sending similar coupons through junk-faxing is the conduct that got AMF in trouble. This is a settlement that enriches AMF and doesn't provide a meaningful benefit to the consumer." (Steven H. Pollak, "Junk Faxes Could Cost Bowling Co. $1 Million", Fulton County Daily Report, May 2).

Posted by tkustas at 07:20 PM




Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.