Case Examples:

• • Taylor saw Hot Topic advertising a sitewide “20% off” sale, but noticed the listed “original” prices seemed inflated from what she normally saw.
  • Jose bought a $50 shirt “on sale” for $30, then discovered Hot Topic had never actually charged the full $50 reference price.
  • Marissa questioned if Hot Topic’s “30% off everything” promotions were really just the company’s regular pricing.

What It Means:

• • The core dispute is whether Hot Topic used fake reference prices & phantom discounts to trick customers into thinking they got a special deal.
  • California & Oregon laws prohibit false advertising & require discounts to be truthful, based on actual original prices.
  • Businesses must have clear evidence to substantiate reference prices as the actual normal selling price before a discount.
  • If you made a purchase on HotTopic.com during the class period, the settlement presumes you saw the alleged false discounts & reference prices.
    

FAQs:

• • How do I know if the discounts I saw were fake? If the “sale” prices were actually Hot Topic’s normal prices and it rarely if ever sold items at the claimed “original” prices, the discounts may have been false.
  • Does Hot Topic admit it did anything wrong? No, the company expressly denies liability and states it settled just to avoid the cost & risk of further litigation.
  • Wasn’t it obvious the discounts were a sales tactic? While most understand discounts are used to drive sales, the lawsuit alleges Hot Topic’s practices crossed the line into violating specific price comparison advertising laws.

Qualifying Examples:

• • Sarah lived in San Diego when she bought a shirt on HotTopic.com in June 2019, so she qualifies as a CA class member.
  • Michael moved to Portland in 2021 and ordered some gifts from the Hot Topic website for Christmas 2022, making him an OR class member.
  • Tanya bought something from Hot Topic online every few months for the past 5 years while living in LA, so all her CA purchases in the class period count.

How to Tell:

• • Check your bank/credit card statements or Hot Topic account history to confirm any purchases on www.Hottopic.com in the relevant periods.
  • If you lived in California or Oregon when you made those purchases, you should be included in the settlement class.
  • You don’t need to prove you saw or relied on any particular discount to be a class member, as the settlement presumes class-wide exposure to the alleged fake discounts.
  • You don’t have to still live in CA or OR now, just at the time of your qualifying purchase – so your current residence doesn’t matter.
    

FAQs:

• • What if I just visited CA or OR? The class definitions are based on residency, not just where you were when you made the qualifying purchase – so tourists are likely not included.
  • Do in-store purchases count? No, only purchases made online at HotTopic.com during the class period qualify, not purchases at physical Hot Topic stores.
  • What if I can’t remember if I made any qualifying purchases? Check your records carefully – if you believe you may have bought something in the relevant time periods, you can file a claim or do nothing to participate in the settlement.

Cash Benefit Examples:

• • Tori found a Hot Topic email receipt showing she bought a dress in October 2020 with a sitewide “15% Off” discount, so she can file a cash claim.
  • The screenshot of Derek’s December 2019 order confirmation says “20% Off Sitewide Sale”, making it valid proof for a cash benefit.
  • Alice’s email receipt showed a July 2022 purchase but didn’t mention any discount, so she wouldn’t have a qualifying cash claim.

How to Choose:

• • Decide if you prefer cash or Hot Topic store credit – if you still shop there, you may find the credit more valuable than $10 cash.
  • The credit benefit is effortless, as you’ll get it automatically if you do nothing, without needing any proof of purchase.
  • If you have a receipt showing a % off sitewide discount and don’t mind filling out a quick form, you can opt for $10 cash instead.
  • Weigh whether it’s worth the effort to dig up old receipts – if not, the automatic $10 credit is an easy default option.

FAQs:

• • What discounts qualify for a cash claim? Only sitewide discounts like “20% off everything” or “15% off sitewide” that apply broadly to all/most products. Item/category specific discounts don’t count.
  • Can I get both settlement benefits? No, it’s one per class member – if you file a valid cash claim, you won’t also get the automatic credit benefit.
  • What if I don’t have any receipts? If you have no proof of a qualifying purchase, you’ll just get the default $10 credit benefit if you do nothing.

Examples of Valid Proofs:

• • An email receipt with the subject line “Your Hot Topic Order Confirmation #123456 – 20% Off Sitewide” that lists your name and Oregon address.
  • A screenshot of your Hot Topic account order history showing a purchase at a California address on 9/1/21 with a “15% Off Everything” discount.
  • A “Hot Topic Order Details” email from June 2022 with your name, order #, and a “25% Off Sitewide Sale” line item.

How to Do It:

• • Collect any email receipts or screenshots you have showing Hot Topic website purchases during the applicable time periods.
  • Highlight where the receipt shows your name, a CA/OR address, order # and a sitewide % off discount – all must be clearly visible.
  • Go to www.HotTopicClassAction.com, click “File a Claim”, fill out the form and upload a copy of your proof of purchase by 10/27/24.
  • Or print a claim form, fill it out, attach your proof of purchase and mail it postmarked by 10/27/24 to the address provided.

FAQs:

• • What if I can’t find a receipt by 10/27/24? If you don’t submit a cash claim with proof of purchase by the deadline, you’ll get the automatic $10 credit benefit instead.
  • Can I file more than one claim? No, it’s one cash or credit benefit per class member regardless of how many qualifying purchases you made.
  • How soon will I get my cash payment? The earliest would be late 2024 after final approval, but it may be 2025 or later depending on any appeals. Consult the settlement website for updates.

Examples:

• • Because Jonathan participated in the settlement and got his $10 credit, he can’t later sue Hot Topic for related pricing practices addressed in this case.
  • Mariah opted out because she wanted to preserve her rights to bring her own false discount lawsuit against Hot Topic in the future.
  • After getting his $10 settlement check, Ricardo was still free to sue Hot Topic for an unrelated issue like a product defect, as that’s not covered by this release.

How to Assess:

• • Carefully weigh if you’re comfortable giving up your rights to sue Hot Topic about the pricing and discount issues alleged in this case.
  • If you want to keep those rights, you’ll need to affirmatively opt out by sending a letter to the Settlement Administrator by 9/27/24.
  • For most, a $10 benefit will be more valuable than the right to try to pursue these particular claims on their own later.
  • Remember, the settlement release is limited to the allegations in this case only – you’ll keep your rights to sue Hot Topic for any unrelated issues.

FAQs:

• • Do I give up my rights even if I do nothing? Yes, unless you opt out, you’ll be bound by the release if you get the automatic $10 credit or file a claim for cash.
  • What if I have my own lawsuit pending? If you’ve already sued Hot Topic on your own for these same issues, you may want to opt out so you don’t release those claims.
  • Does the release cover other retailers too? No, it only releases your rights to sue Hot Topic and its affiliated parties, not any other retailers engaging in similar practices.

Examples:

• • Unhappy with the low payment amounts, Maria filed an objection with the Court arguing the settlement should be rejected unless benefits are increased.
  • Bill opted out because he felt he could recover more by suing Hot Topic on his own rather than settling for just $10.
  • Skeptical of the claims process, Ana objected that claimants shouldn’t need proof of purchase to get the cash benefit.

How to Decide:

• • If you think the settlement is unfair for the class, file a formal objection with the Court detailing why and what changes would make it fair.
  • An objection keeps you in the class, so you can still get settlement benefits if it’s approved, just on terms you disputed.
  • If you want to reject the settlement entirely and preserve your rights to sue separately, opt out by sending a letter to the Administrator.
  • Opting out means you get no payment from this case, so consider that downside carefully, as most individuals’ claims may be too small to litigate solo.

FAQs:

• • Can I object and opt out? No, you must choose one path – if you opt out, you have no standing to object because you’ll no longer be a class member.
  • What if I do nothing? If you don’t file a claim, object, or opt out, you’ll automatically get a $10 credit and release your rights to sue when the settlement is final.
  • How many objections are needed to stop the settlement? There’s no threshold, but the Judge will consider the volume and merit of objections when deciding if the settlement is fair.

Tips:

• • Set reminders in your calendar for the opt-out/objection and claim filing deadlines so you don’t miss your chance to take action.
  • Aim to mail any opt-out, objection or claim form a few days before the deadline in case of postal delays to ensure timely receipt.
  • Return to the settlement website periodically to check for any updates on deadlines, final approval status, or when payments will be sent.

How to Stay Informed:

• • Visit www.HotTopicClassAction.com regularly for the latest news and information on the settlement deadlines and progress.
  • Ensure Settlement Administrator has your current email and mailing address so you don’t miss any official notices.
  • If you hire an attorney to represent you individually, ask them to monitor the docket and keep you apprised of key dates.
  • Even after the deadlines pass, check the website for updates on when the judge will rule on final approval and the claims payment timeline.

FAQs:

• • What if I miss the claim filing deadline? If you don’t submit a valid claim by 10/27/24, you can still get the automatic $10 Credit Benefit as long as you didn’t opt out.
  • When will the settlement be final? If the Court grants final approval on 11/5/24, the settlement will be final after the 30-day appeal window closes, unless an appeal is filed.
  • What if there’s an appeal? If someone appeals final approval, settlement benefits and payments will be on hold until the appeal is resolved, which can take a year or more.

Questions About the Settlement Details:

• • 1. What’s this settlement about?
    • The lawsuit claims Hot Topic used fake reference prices and phantom discounts online to trick shoppers into thinking they got a deal.
  • 2. Who’s eligible for money?
    • California residents who made a purchase on HotTopic.com from 3/15/19 to 7/29/24 and Oregon residents from 8/25/22 to 7/29/24.
  • 3. What are the settlement benefits?
    • Class members can get either a $10 Credit applied automatically to their Hot Topic account or $10 Cash if they file a valid claim.
  • 4. How do I get the cash benefit?
    • File a claim form online or by mail by 10/27/24 and include proof of a qualifying purchase that had a sitewide % off discount.
  • 5. What if I don’t like the terms?
    • You can object with the Court by 9/27/24 detailing why it’s unfair or opt out to exclude yourself and preserve your right to sue separately.

Key Dates & Deadlines to Remember:

• • September 27, 2024: Last day to mail or file an objection to the settlement terms or request exclusion from the class.
  • October 27, 2024: Deadline to submit a valid claim form and proof of a qualifying purchase for the Cash Benefit option.
  • October 27, 2024: Last day to update your contact info with the Settlement Administrator to ensure you get your benefits.
  • November 5, 2024: Final approval hearing date when the Judge will decide whether the settlement is ultimately fair.
  • Late 2024 / Early 2025: The soonest settlement benefits may be distributed if final approval is granted without appeals.

FAQs – Quick Answers to Other Common Questions:

• • Does Hot Topic admit to misleading pricing? No, the company denies the allegations but agreed to settle to avoid the time and expense of ongoing litigation.
  • How much is Hot Topic paying? The settlement is valued at over $12 million total between the cash/credit benefits, notice costs, attorney fees and other expenses.
  • Can I get both the $10 cash and credit? No, you can only choose one benefit or the other – if you file a valid claim for cash you won’t also get the automatic credit.
  • What if I do nothing? If you don’t file a claim, object or exclude yourself, you’ll get the $10 Credit Benefit automatically and give up your right to sue separately.
  • Is $10 the most I can get per purchase? Yes, the settlement benefit is capped at $10 per class member regardless of how much you spent or how many qualifying purchases you made.

Disclaimer:

This article does not constitute legal advice. Class members should rely on the official court-approved settlement notice and website for definitive terms and instructions.

Eligibility for settlement benefits will be determined by the Settlement Administrator based on the criteria in the settlement agreement. This summary is in no way a guarantee or promise of payment.