In a class action against an online merchant, the plaintiffs alleged that the merchant’s website was misleading and deceived its customers into enrolling in an Internet-based program without their knowledge or consent.
In a class action against an online merchant, the plaintiffs alleged that the merchant’s website was misleading and deceived its customers into enrolling in an Internet-based program without their knowledge or consent. The defendant retained Dr. Michael Keeley, a senior vice president of Cornerstone Research, to assess whether common evidence could be used to show that the proposed class members were misled and suffered economic harm as a result of the challenged conduct or whether individual inquiry would be required.
The court denied the plaintiffs’ motion for class certification.
Dr. Keeley and Cornerstone Research performed a statistical analysis of a complex database with millions of records related to the enrollment behavior of the merchant’s customers. Analysis of these data showed that the vast majority of the customers who were offered the online program were not misled because these customers chose not to enroll. The analysis showed that the overwhelming majority, if not all, of the online merchant’s customers understood the enrollment process, and were not misled. Dr. Keeley also showed that if there were any customers who were misled, individual proof would be required to identify these customers. The court denied the plaintiffs’ motion for class certification.
