Waffle House, Inc. is a restaurant chain known for its fast but freshly-prepared food. The complaint for this class action takes issue with its price for a meal called the All-Star Special, which Waffle House has advertised as costing only $10, with the price “$13.25” displayed beside that with a strikethrough, suggesting that it previously cost that much. The complaint alleges that the All-Star Special was never offered for $13.25 and that this price is therefore what’s called a false reference price.
Two classes have been defined for this action:
- The Florida Class is all persons in Florida who bought the product during the applicable statutes of limitations.
- The Consumer Fraud Multi-State Class is all persons in Texas, Kentucky, Louisiana, Oklahoma, Mississippi, Virginia, Arkansas, Alabama, and Arizona who bought the product during the applicable statutes of limitations.
Waffle House has some 1,900 restaurants across twenty-five states, most of them in the southern US.
According to the complaint, the All-Star Special consists of “(1) two eggs with toast and either grits, hash browns, or sliced tomatoes, (2) a waffle and (3) bacon, sausage, or ham…”
Page 1 of the complaint shows an ad for the All-Star Special, showing an image of a waffle with butter and syrup on a plate and the edges of two other plates, the number “13.25” with a strikethrough followed by “Only 10.00,” “All-Star Special,” and the description, “Two Egg Breakfast, Waffle & Sausage (Bacon or City Ham).”
The complaint alleges, “The $10.00 price is misleading because these three items were not previously sold together at the strikethrough price of $13.25.”
Page 2 shows what the complaint claims are previous ads for the All-Star Special, showing all the components of the meal. One shows a price of “11.00” with a strikethrough, followed by “Only 8.09.” The other shows a price of “10.25” with a strikethrough followed by “Only 7.50.” The complaint alleges, “This means the reference price does not provide a legitimate basis for advertising a price comparison to the offered price.”
Where does the $13.25 price come from? The complaint alleges that it comes from the price of the three items if they were purchased separately, with the eggs, toast, and side of grits, hash browns or tomatoes at $5.25, the waffle at $4.50, and the bacon, sausage, or ham at $3.50.
The complaint alleges that the offer is actually similar to situations where “a merchant will offer a customer bargains in the form of additional merchandise on the condition they purchase a particular article at the price usually offered.” It gives as examples “Buy One, Get One Free” offers or “2-for-1” sales. The complaint claims that the offer is actually that the customer buy the breakfast meal and waffle for $10 (normally $9.75), and then they will get the bacon, sausage, or ham free.
It therefore claims that the strikethrough price is a false reference price that does not apply to the All-Star Special and that it “is not the bargain or value customers expect.”
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Waffle House All-Star Special False Reference Pricing Complaint
December 17, 2022
Waffle House, Inc. is a restaurant chain known for its fast but freshly-prepared food. The complaint for this class action takes issue with its price for a meal called the All-Star Special, which Waffle House has advertised as costing only $10, with the price “$13.25” displayed beside that with a strikethrough, suggesting that it previously cost that much. The complaint alleges that the All-Star Special was never offered for $13.25 and that this price is therefore what’s called a false reference price.
Waffle House All-Star Special False Reference Pricing ComplaintCase Event History
Waffle House All-Star Special False Reference Pricing Complaint
December 17, 2022
Waffle House, Inc. is a restaurant chain known for its fast but freshly-prepared food. The complaint for this class action takes issue with its price for a meal called the All-Star Special, which Waffle House has advertised as costing only $10, with the price “$13.25” displayed beside that with a strikethrough, suggesting that it previously cost that much. The complaint alleges that the All-Star Special was never offered for $13.25 and that this price is therefore what’s called a false reference price.
Waffle House All-Star Special False Reference Pricing Complaint