Amway settles suit, to replace $20M in gift cards

AP News
Posted: Apr 06, 2011 2:35 PM
Amway settles suit, to replace $20M in gift cards

Amway has agreed to redeem more than $20 million in gift cards to settle a lawsuit claiming they improperly included a redemption date.

Lawyers who filed the lawsuit in Los Angeles Superior Court announced the settlement this week.

The suit accused Amway and two related companies of misrepresentation. It claimed that beginning in 2005, consumers in 26 states bought Amway gift cards carrying redemption dates that could have been interpreted as illegal expiration dates.

The suit claims many people threw away the cards, believing they had expired.

Under the settlement, consumers must file claims by June 20th to receive non-dated replacements worth at least $50.

Michigan-based Amway _ a leading seller of vitamins, cosmetics and cleaning products _ did not acknowledge wrongdoing.