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SquareTrade Facing Class Action Over 'Fake' Protection Plans

SquareTrade, Inc. is the defendant in a proposed class action filed over allegations that the company fraudulently and deceptively markets and sells fake protection plans for its consumer electronics and appliances through Amazon.com. Filed in New York, the 46-page lawsuit claims that SquareTrade has “for years” been knowingly selling fake protection plans to its Amazon.com customers. Specifically, the company allegedly sells protection plans that supposedly cover products that are not even eligible for coverage because the underlying product was not purchased on Amazon’s website. “SquareTrade does not properly inform visitors to its Amazon.com storefront that protection plans do not cover consumer products that were not purchased on Amazon.com,” the case alleges.

Additionally, the complaint claims SquareTrade unlawfully fails to provide consumers with legally required terms and conditions of its protection plans, with the guidelines instead being buried in a non-descript section “several screens below the purchase section of the product page” below other products’ advertisements. 

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