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Chick-fil-A Agrees to $4.4 Million Settlement for Overcharging During COVID-19

Jan 31, 2024 02:15 AM EST | By Jep Collins

Court room
(Photo : Unsplash/RobertLinder)

Chick-fil-A, a popular fast-food chain, has decided to settle a lawsuit that claimed it charged too much for delivery during the COVID-19 pandemic. The lawsuit, which was filed in Georgia in October 2023, accused Chick-fil-A of not being honest about its delivery fees.

Customers using Chick-fil-A's app or website were initially promised low delivery costs. However, the lawsuit stated that the company secretly raised its menu prices by 30% for delivered orders.

This settlement comes as a response to these allegations, highlighting the chain's move to address the issue.

Also Read: KFC Unveils New Smash'd Potato Bowls: A Delicious Fusion of Mashed Potatoes, Fries, and Cheese!

Chick-fil-A's $4.4 Million Settlement: Customers Compensated for Overpriced Deliveries

Chick-fil-A, the well-known Atlanta-based fast-food chain, has agreed to pay $4.4 million to settle claims of overcharging customers on delivery orders. This decision follows a lawsuit filed in Georgia on October 3, as reported by Top Class Actions.

The lawsuit was initiated by plaintiffs Eboni Brown, Tanique Clarke, Travis Johnson, Dominic Greetan, Friday Frazier, and Keisha Rabon. They alleged that Chick-fil-A promoted its delivery service as a budget-friendly option but then hiked the prices of items when ordered for delivery.

According to Insider, this price increase was significant, ranging from 25 to 30%. For example, 30 chicken nuggets cost $5 to $6 more if ordered for delivery than if they are picked up or purchased in-store.

The agreement in this lawsuit includes a $1.45 million cash fund and a $2.95 million fund for gift cards. Customers affected by this issue can choose up to $29.95 in cash or a gift card of equal value.

As part of the settlement, Chick-fil-A also committed to clearly stating on its website and app that delivery prices might be higher. While the company has not admitted any wrongdoing, it has agreed to provide email addresses to the settlement administrator to notify potential claimants.

Chick-fil-A has refuted all claims made against them in the recent lawsuit. When TODAY.com contacted the fast-food company for a statement, they did not receive an immediate reply.

The lawsuit accuses Chick-fil-A of exploiting the surge in delivery orders during the pandemic to gain profits. It alleges that the company misled customers about the actual costs of their orders.

Chick-fil-A Settlement: Claim Window Closing for Eligible States

Chick-fil-A Restaurant
(Photo : Unsplash/MalharPatel )

Residents of Florida, Georgia, California, New York, and New Jersey who used the Chick-fil-A One app or the company's website for delivery orders from November 1, 2019, to April 30, 2021, may qualify for a cash settlement or a gift card worth up to $29.25.

As mentioned in the claim form, the settlement administrator has already sent out email notifications to eligible customers. However, the actual amount each person receives could be less, depending on the total number of claims made.

The final date to file a claim is February 15, 2024, leaving a brief period for customers to act. Those who have either misplaced or never received an email from the class-action settlement administrator can contact the administrator directly to request one. It's important to note that the Unique ID provided in the email is necessary to complete the claim form.

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