MediaBuyerPlanner: The Sharper Image will issue a $19 merchandise credit to about 3.2 million customers as per a settlement of a class-action suit that alleged the specialty retailer misled customers about the effectiveness of its Ionic Breeze air purifiers, writes DM News.
The settlement must still be approved by the court, and a court date has been set for March 1.
The merchandise credits must be used to purchase Sharper Image-branded products, so the settlement could potentially benefit the company. The agreement also dictates that Sharper Image will sell Ozone Guard attachments for the floor models of Ionic Breeze, for $7 apiece. The company must also pay $1.875 million in legal fees for the plaintiff, Manuel Figueroa.
The retailer has seen steady declines in sales over recent years, thanks to bad publicity for the Ionic Breeze and a ho-hum product assortment. For the six months ended July 31, the company’s revenue plummeted 24 percent, and in Sept., founder Richard Thalheimer was ousted, to be replaced by “turnaround specialist” Jerry W. Levin.
Related stories:
- Two More Execs Out at Sharper Image
- Sharper Image Ousts Thalheimer, Hires Interim CEO
- Sharper Image Free Fall Continues
- Poor Performance Means Big Cuts for Sharper Image
- Sharper Image Direct Marketing Sales Down 35 Percent
