National Sale Price Settlement
www.nationalsalepricesettlement.com

Frequently Asked Questions

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1. What is this lawsuit about?

The lawsuit alleged that Harbor Freight violated the law by advertising merchandise at a “sale” or “comp at” price when the same items had not been sold at the advertised regular or “comp. at” price for at least 28 of the preceding 90 days. Harbor Freight disputed Plaintiffs’ allegations, and believes that it complied with all applicable laws at all times. The Court did not decide in favor of Plaintiffs or Harbor Freight, and the Court has made no decision that Harbor Freight did anything wrong. Instead, both sides agreed to a settlement.

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2. Why is there a settlement?

By agreeing to settle, both sides avoid the cost and uncertainty of a trial and appeals, and the people affected will get a chance to receive compensation. The Class Representatives and their attorneys think the settlement is best for all Class members. If the Court approves the settlement, then Harbor Freight will no longer be legally responsible for the claims made in this lawsuit beyond the amounts it pays under the settlement, and the Class will avoid the risk of recovering nothing.

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3. What is a Class Action lawsuit?

A class action is a lawsuit in which one or a few named plaintiffs sue on behalf of all of the members of a similarly situated group to recover damages for all members of the group, without the necessity of each member filing an individual lawsuit or appearing as an individual plaintiff. In this case, the class representative who represents Class members is Plaintiff Beck. Class actions are used by courts where the claims raise basic issues of law or fact that are common to all members of the class thereby making it fair to bind all Class members to the orders and the judgment in the case, without the necessity of hearing the same claims over and over. Use of the class action eliminates the need to file multiple lawsuits, and assures that all Class members are bound by the results of a single lawsuit.

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4. Does the settlement mean that Harbor Freight did something wrong?

No, the court did not make any determination that Harbor Freight did anything wrong or is liable in any way to plaintiffs, Harbor Freight believes it complied with the law, and the settlement is not an admission that Harbor Freight did anything wrong. Both sides decided that resolution of the litigation through the settlement was in their best interests.

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5. Who is included in the Settlement?

You are a Class member if you were a Harbor Freight customer in the United States who, between April 8, 2011 and up to December 15, 2016 (the “Class Period”), purchased any product from Harbor Freight which was advertised with a higher reference price (e.g., “reg. $XXX,” “only $XXX,” or “comp at $XXX”) adjacent to a lower current offering price, but which was not sold by Harbor Freight at the higher reference price for at least 28 of the last 90 days prior to purchase. The Class excludes Harbor Freight’s employees and representatives, court officials in this case, and any customer already party to a suit against Harbor Freight challenging advertised pricing.

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6. How can I tell whether I am a Class member?

If you are not sure whether you’re in the Class, call the Settlement Administrator at (888) 321-0482 or view the Notice by clicking here.

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7. What does the proposed Settlement provide?

If you are a Class member and the settlement is approved, and you filed a Claim Form by August 7, 2017, you may be entitled to a payment. The settlement allows eligible Class members who timely file claims to elect their recovery as follows:

  • Option A.    Customers who have itemized Harbor Freight receipts reflecting one or more purchases between April 8, 2011 and December 15, 2016 with a “you saved” amount reflected on their receipts can submit copies of those receipts and elect to receive either 20% in cash, or 30% in a Harbor Freight gift card, of the total “you saved” amount listed on their receipts, excluding any amounts reflecting free items or items that were later returned.
  • Option B.    Customers who have credit or debit card statements reflecting one or more purchases at Harbor Freight between April 8, 2011 and December 15, 2016 can submit copies of those statements and elect to receive either 10% in cash, or 12% in a Harbor Freight gift card, of the total Harbor Freight purchases on their credit or debit card statement(s), excluding any amounts reflecting items that were later returned.
  • Option C.    All other customers who made purchases at Harbor Freight between April 8, 2011 and December 15, 2016 may submit one declaration, signed under penalty of perjury, stating that they purchased an item from Harbor Freight (other than a free item or an item that was later returned) that was advertised with a higher reference price (e.g., “reg. $XXX,” “only $XXX,” or “comp. at $XXX”) adjacent to a lower current offering price, and that they do not have itemized Harbor Freight receipts or credit or debit card statements of their Harbor Freight purchases. Customers submitting this declaration will receive one $10 Harbor Freight gift card.

Class members could have chosen relief under both Options A and/or B above, as long as they provided the appropriate receipts and/or statements; with the exception that the same purchase could not have been submitted under both Options A and B. Class members that qualify for relief under Option A and/or B cannot qualify for relief under Option C above.

If, after payments for all valid claims have been calculated, the total amount paid to Class members, plus administrative fees, plus attorney’s fees, is less than $23 million, Class members with valid claims may be eligible for additional compensation on a pro rata basis. The amount of the additional compensation will depend on what kind of documentation you provided with your Claim Form, whether you opted for a cash payment or a gift card, and the number of Class members who submit valid claims.

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8. How can I get a payment?

In order to ask for a payment, you must have completed and submitted a Claim Form by August 7, 2017.

The Settlement Administrator will review the information you provide and determine if you are eligible to receive a payment. If you are eligible, you will receive a payment if the settlement is approved by the Court and appeals, if any, are resolved.

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9. How much will my payment be?

If you are a Class member and you have submitted a valid and timely Claim Form, you will be eligible to receive a settlement payment, provided the Court approves the settlement. Your settlement payment will depend on how much you spent at Harbor Freight, what kind of documentation you have provided, and whether you opted for a cash payment or a Harbor Freight gift card. For example, if you have submitted itemized Harbor Freight receipts showing a total “you saved” amount of $100.00, and you have opted to receive a cash payment, you will receive a check for $20.00. If you have opted to receive a gift card, you will receive a gift card in the amount of $30.00.

If, after payments for all valid claims have been calculated, the total amount paid to Class members, plus administrative fees (up to a maximum of $3 million), plus attorney’s fees, is less than $23 million, Class members with valid claims may be eligible for additional compensation on a pro rata basis. The amount of the additional compensation will depend on what kind of documentation you provided with your Claim Form, whether you opted for a cash payment or a gift card, and the number of people who submit valid claims.

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10. If I am eligible, when will I receive a payment?

Payments will be made, after the Court grants “final approval” of the settlement and after any appeals are resolved, to eligible Class members who did not opt out and who have sent in valid and timely Claim Forms. If the Court approves the settlement, it is possible that there may be appeals. Please be patient. Payments to eligible Class members will be mailed in most instances no later than approximately 1-2 months after the Court grants final approval of the settlement and appeals, if any, have been resolved.

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11. Will I owe any income taxes for a settlement payment that I receive?

The income tax impact of any settlement payment received is the responsibility of each Class member to determine. Consult with your personal tax adviser about any income tax impact of a settlement payment. Harbor Freight is not responsible for paying and will not estimate or compute any taxes that may be owed by Class members as a result of receiving a settlement payment.

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12. If I receive a payment, when must I cash the check?

Checks to Class members who have timely submitted Claim Forms eligible for payment under the settlement must be negotiated (cashed or deposited) within 60 days of issuance. Any check payable to a Class member not negotiated within 60 days of issuance will become null and void, and the Class member to whom such check was issued will be deemed to have withdrawn the Claim Form represented by such stale check and shall have no further right to a payment under the settlement.

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13. What if my mailing address or contact information changed after I submitted a Claim Form?

If you have changed your mailing address or contact information after you have submitted a Claim Form, you MUST write to the settlement administrator at National Sale Price Settlement, c/o GCG, PO Box 10351, Dublin, OH 43017-5551 to tell them of your address change. Failure to do so may waive your rights in this matter.

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14. What if my Claim Form is rejected or if I disagree with the amount of my settlement payment?

If you receive a check but you believe that the payment amount is incorrect, or if you are told that your claim is not eligible for payment, then you must contact the Settlement Administrator in writing to request reconsideration or to provide any missing or additional information. You will receive a written response from the Settlement Administrator of the final determination of your claim.

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15. What if my Claim Form is rejected as being untimely?

A Claim Form is untimely if it was not mailed and postmarked, or submitted online here, before the deadline for claims, August 7, 2017. (Class members selecting Option C could not submit their Claim Forms online and must have mailed them to the Settlement Administrator at National Sale Price Settlement, c/o GCG, PO Box 10351, Dublin, OH 43017-5551.) There is no further review or appeal of the Settlement Administrator’s determination that a Claim Form was not timely submitted.

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16. What if the Class member is deceased or incapacitated?

A Claim Form may have been filed on behalf of the estate of a deceased Class member or an incapacitated Class member only by a Legally Authorized Representative. A Legally Authorized Representative means an administrator, personal representative, or executor of a deceased Class member’s estate, or a guardian, conservator, attorney-in-fact, or next friend of an incapacitated Class member, or any other legally appointed person or entity responsible for handling the business affairs of a deceased or incapacitated Class member. You must submit written proof of the authority or appointment of a Legally Authorized Representative.

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17. What am I giving up if I participate in the settlement?

Unless you excluded yourself, you will remain in the Class. This means that you can’t sue Harbor Freight over the claims settled in this case. It also means that all of the Court’s orders will apply to you and legally bind you. If you did not exclude yourself and have stayed in the Class, regardless of whether you have submitted a Claim Form, you have agreed to “release and discharge” Harbor Freight as described in the Settlement Agreement. A complete copy of the Settlement Agreement can be obtained on this website. The Settlement Agreement specifically describes the released claims in legal terminology. Talk to Class Counsel or your own lawyer if you have questions about the released claims or what they mean. Do not contact the Court or counsel for Harbor Freight as they are not able to answer your questions.

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18. What if I don't want to be included in the Settlement Class?

To exclude yourself from the settlement, you must have already submitted a request for exclusion postmarked by June 7, 2017.

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19. If I excluded myself, can I get money from the Settlement?

No. If you have excluded yourself, you will not receive a settlement payment, even if you have submitted a Claim Form.

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20. If I didn't exclude myself, can I sue Harbor Freight later?

No. Unless you have excluded yourself, you give up any right to file claims against Harbor Freight for the matters that this settlement resolves. You must have excluded yourself from this Class to sue Harbor Freight over the claims resolved by this settlement, unless you had already commenced a lawsuit against Harbor Freight prior to December 15, 2016.

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21. Can I object to the terms of the Settlement?

The deadline to file a Notice of Intent to Object was June 7, 2017.

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22. What if I did nothing?

You had the right to do nothing. However, if you did nothing, you will not get any payment from this settlement. Unless you excluded yourself, you won’t be able to start a lawsuit or be part of any other lawsuit against Harbor Freight about the issues in this case (unless you had already commenced a lawsuit against Harbor Freight before December 15, 2016).

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23. Who are the lawyers representing the Class?

The Court appointed Dworken & Bernstein, L.P.A. (Painesville, Ohio) to represent you and other Class members as "Class Counsel."

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24. How much in attorney’s fees will be paid to Class Counsel?

Class Counsel asked the Court to approve payment of attorney’s fees and reimbursement of their expenses of up to $10,000,000. Attorney’s fees and expenses will be paid by Harbor Freight and will not reduce payments to Class members. Class Counsel also asked for incentive compensation of up to $10,000 for the Class Representative, to be paid by Harbor Freight. The Court may award less than these amounts. The Court will determine how much to award in attorney’s fees and costs to Class Counsel and in incentive compensation to the Class Representatives.

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25. Will I have to pay the lawyers?

You do not have to pay Class Counsel. Class Counsel petitioned the Court for attorney’s fees and costs that will be paid by Harbor Freight.

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26. What was the purpose of the Settlement Approval Hearing?

At this hearing, the Court considered whether the settlement is fair, reasonable, and adequate. If there were objections, the Court considered them. The Court will also decide how much to award Class Counsel as fees and expenses for representing the Class and whether and how much to award the Class Representative as incentive compensation. After the hearing, the Court will decide whether to approve the settlement.

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27. When and where will the Court decide whether to grant final approval of the Settlement?

The Court held the Settlement Approval Hearing on July 7, 2017, 2017 at 1:15 p.m. at the Courthouse for the Court of Common Pleas for Lake County, Ohio, 47 North Park Place, Painesville, Ohio 44077 and the Judge is still taking everything that occurred at the hearing under advisement. We do not have any information on when the Court will make its ruling. We will update this website once the Court makes its ruling.

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28. Where can I get more information?

More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement from this website. You can also get a copy of the Settlement Agreement by writing to the Settlement Administrator at National Sale Price Settlement, c/o GCG, PO Box 10351, Dublin, OH 43017-5551. You may also call the Settlement Administrator at (888) 321-0482 with any additional questions. If you still have questions that are not answered by this website or the Settlement Administrator, you may also call one of the Class Counsel, Nicole T. Fiorelli, at (440) 946-7656, or write to her at Dworken & Bernstein Co., L.P.A., 60 South Park Place, Painesville, Ohio 44077.

Please do not call or write the Court, Class Representative Beck, Harbor Freight, or the attorneys for Harbor Freight for information or advice about the settlement as they may not answer your questions.

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