Staples Lawsuit Alleges Retailer Deploys Bait-and-Switch Tactics for AutoRestock Program Shipping Fees

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A proposed class action lawsuit alleges Staples uses deceptive bait-and-switch tactics for its online AutoRestock program, namely by tacking on an undisclosed shipping fee for certain items.

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The 22-page Staples lawsuit alleges the office supplies retailer “baits” customers by promising discounts of up to 25 percent off the purchase price for most products as long as the buyers agree for those items to be automatically shipped in the future. However, the suit claims Staples tacks on to this arrangement an undisclosed $9.95 shipping fee on all products under $25.

Per the lawsuit, Staples has deliberately designed the checkout process so that customers see one low price before and during checkout, but are automatically billed a higher price that includes the hidden $9.95 shipping fee, which the suit claims is not disclosed at any point prior to the completion of the transaction.

As the complaint tells it, “[t]housands, if not millions,” of Staples customers have been lied to and “effectively stolen from,” as they were told they would be charged one low price before learning later that they were charged a higher price.

“The scheme and deception are intentional, designed to entice customers away from competitors that properly disclose applicable shipping fees or have free shipping on eligible items,” the proposed class action charges, accusing Staples of deploying bait-and-switch tactics in an apparent attempt to “stay relevant” amid an increasingly crowded online marketplace.

The suit contends that Staples is almost certainly aware that shipping fees are “the most common reason that customers do not follow through on a transaction.” Staples’ apparent solution to this, the filing relays, is to “completely hide the fact that it charges shipping fees on its AutoRestock orders” during the entire checkout process.

“In effect, Staples eliminated the number one reason that customers could potentially abandon their shopping carts on Staples’ website by not disclosing shipping fees until the transaction has closed, and even then only covertly,” the case states.

The allegedly hidden Staples shipping fee is only visible to a customer if they click on “View Subscription” during the order process, a step unnecessary for completing a transaction, the lawsuit stresses. Staples also discloses the added shipping fee in confirmation emails sent to customers after their online order has been processed, the suit adds.

According to the suit, “[m]ost customers never find out about the shipping fee, as they click out of the screen at the end of the transaction (without clicking on View Subscription), are not extremely diligent auditing their credit card statements, and do not routinely check online order confirmation emails.”

The Staples lawsuit looks to cover all individuals in the United States who were charged or paid a shipping fee by Staples after ordering an item through Staples’ AutoRestock program on the retailer’s website.

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