Several months ago, I wrote about the questionable value of a DirectBuy membership. My conclusion was that while it may be a good deal for some people, there are a lot of details that a potential member should consider before signing on the dotted line. Recently I received a legal notice in the mail with details of a pending settlement in a class action lawsuit against DirectBuy. (United States District Court for the District of Connecticut).
At issue, according to the plaintiffs, is that DirectBuy should have, but did not, disclose that they receive certain financial benefits from some of its suppliers. The plaintiffs contend that these benefits, such as early payment discounts and volume rebates, should be passed on to DirectBuy members. Full details of the plaintiffs’ claims and a copy of their complaint are accessible by password only.
DirectBuy denies any wrongdoing but has agreed to a settlement in the case which amounts to a brief period of free membership for current and past members (length of the free period depends on the member’s status).
Documents have been mailed to the parties affected by this class action.
It must be noted, however, that this settlement only affects one class action. There are other class action lawsuits pending. Former and current members should examine all of their legal options closely before agreeing to any settlement because accepting a settlement forfeits rights to other claims.
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