U.S. Markets close in 1 hr 3 mins

Zappos Shoppers Seek Deal for 10% Discount After 2012 Data Breach

Samantha McDonald

Click here to read the full article.

A pool of Zappos shoppers that filed suit against the online retailer over a data security breach in 2012 are now asking a judge to rule on a deal that would provide the affected customers with a 10% discount on their next order.

In a motion filed with the United States District Court for the District of Nevada on Thursday, nine plaintiffs requested on behalf of a settlement class that the Las Vegas-based company email a discount code that would shave 10% off of the impacted 24 million shoppers’ next order on Zappos.com or the retailer’s mobile app.

More from Footwear News

The suggested single-use markdown, according to the lawsuit, could be used to purchase multiple items and premium products, subject to no caps on either the number or value of those items. The code would also be transferable via gift or sale, and for reduced-price or on-sale goods, the discount would be applied to the lowest-cost product and not the original list price.

“Discount codes will also [be] usable the moment they are received — that is, prior to final approval — allowing settlement class members to receive the benefits of the settlement far sooner than is generally the case with class action settlements,” it read. (Per the documents, shoppers would have until 11:59 p.m. PT on Dec. 31 or 60 days after distribution to redeem the discount codes.)

The filing comes more than seven years after Zappos announced on January 2012 that a criminal or group of criminals had gained unauthorized access to its network, compromising millions of customers’ personal information, including their names, email addresses, billing and shipping addresses, the last four digits of their credit card numbers and their “cryptographically scrambled passwords.”

After the hack, nine class action complaints were filed in federal courts in Florida, Kentucky, Massachusetts and Nevada. Following years of back-and-forth litigation and a denied petition by Zappos to send up the record of the case for review in March, the parties renewed their settlement discussions, resulting in the proposed settlement filed on Thursday.

FN has reached out to Zappos for comment.

Want more?

How Zappos’ Unlikely Partnership With Fender Is Boosting Employee Morale

Zappos Execs Kristina Broumand and Karlyn Mattson on the Importance of Women Supporting Women

How Experiential Retail Is Leading to Higher Conversion Rates and Order Values for Zappos

Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.