As the class action world continues to modernize, coupons are more and more valuable to both class members and defendants. No matter the product, the company, or the situation, coupons can be both applicable and beneficial to all sides of a settlement.
CCC knows as well as anyone that coupons can be a confusing topic. However, we also know that if there’s one thing we understand as a company, it’s coupons. After all, we pioneered the coupon market-making industry, and who better to learn from than us? Today, we want to cover what a coupon is and how it can be beneficial to both plaintiff and defense attorneys. After reviewing the recent Massage Envy coupon settlement, we know folks can benefit from a clearer understanding of how CCC aligns interests across the board in coupon settlements.
First things first, what is a coupon? Well, it can be any number of things. In this industry, coupons can go by many names: coupons, rebate certificates, store credit vouchers, cash value certificates, gift cards, enhanced minimum recall rebates, etc. Even with all these different terms being thrown around, they all tie back to the same simple idea: a certificate that lowers the price of a product. CCC recently oversaw the Korean Airlines Antitrust Settlement which serves as a strong case study for coupon settlements. The class was paid a total of $50 million in cash and an additional $36 million dollars in coupons. The coupons refunded airfare costs on Korea Air and Asiana Airlines and were freely transferable. Additionally, coupon codes were valid for three years after the settlement and could be sold, which led to every coupon being used.
Now, how can the coupons be used and how can they benefit recipients? For the companies settling, coupons provide several advantages to a strictly-cash settlement. Coupon settlements will always be less expensive than cash settlements. If that’s not enough, coupons also generate new business by giving consumers an incentive to use their coupons.
But what about the claimants using the coupons? Well, there are essentially two main ways to maximize your coupon. The first, obviously, is using the coupon for rebates on the specific product it is designed for, but what if that does not apply to you? What if you don’t want to fly to Korea in the next three years and you’d rather get a Honda this time? Well, that’s where Certificate Clearing Corporation comes in. We specialize in creating markets for coupons. If you’re not interested in using your coupon, you can sell it to us. We create a quick and easy cash offer to maximize the benefit you will get out of your coupon. Certificate Clearing has been creating coupon markets for nearly twenty years and provides immediate cash to coupon holders. In fact, we create such effective coupon markets that lawyers involved in these settlements often request to be paid in part with coupons. When the attorneys are choosing coupons as part of their fee, the Judge can see an alignment of interests and knows the coupons have real value.
As vague and confusing as the term may be, coupons are integral when settling challenging cases that may otherwise not pay out at all. If you ever have a question about settling with coupons, give us a call at (312)-204-6969- we are happy to talk about even the most esoteric cases out there.
Here are some links to the settlements discussed up above:
- Massage Envy settlement overview: https://www.pierceatwood.com/update/don-frederico-guest-aba-podcast-ninth-circuit-weighs-coupon-settlements-massage-envy
- Massage Envy settlement page: https://www.massagefeesettlement.com
- Korean Arilines settlement overview: https://certificateclearing.com/index.php/2021/05/14/case-study-korean-air-antitrust-litigation/
- Nissan Transmission settlement overview: https://considertheconsumer.com/class-action-settlements/nissan-transmission-settlement-over-277-million-for-faulty-transmissions-in-nissan-pathfinder-rogue-infiniti-qx60?fbclid=IwAR1TncXO3G4yKAG5xZiPtm8hTEg-cugsp7VnbY2m5hCJf3rwbeR1TYfmO_o