National Sale Price Settlement
www.nationalsalepricesettlement.com

Frequently Asked Questions

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1. What is this lawsuit about?

The lawsuit alleges 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 disputes 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 timely file a Claim Form, 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 can choose relief under both Options A and/or B above, as long as they provide the appropriate receipts and/or statements; with the exception that the same purchase cannot be 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 complete and submit a Claim Form. You may download a Claim Form by clicking here. The Claim Form requires you to provide:

  • Your name,
  • Your current mailing address, email address, and phone number,
  • Your signature confirming that between April 8, 2011 and December 15, 2016, you purchased a 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, and
  • If selecting compensation Option A or B, supporting documentation of your claimed eligible purchases (copies of one or more itemized Harbor Freight receipts or credit or debit card statements showing one or more Harbor Freight purchases). No supporting documentation is required for Class members selecting Option C.

Please read the instructions carefully, fill out the Claim Form, sign it, and mail it postmarked no later than August 7, 2017 to:

National Sale Price Settlement c/o GCG PO Box 10351 Dublin, OH 43017-5551

Alternatively, if you qualify for Options A and/or B, you can submit your claim online by clicking here. Class members selecting Option C must mail their signed Claim Form to the address above.

After you submit the Claim Form, 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 submit 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 provide, and whether you opted for a cash payment or a Harbor Freight gift card. For example, if you submit itemized Harbor Freight receipts showing a total “you saved” amount of $100.00, and you opt to receive a cash payment, you will receive a check for $20.00. If you opt 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 do not opt out and who send in valid and timely Claim Forms. If the Court approves the settlement after a hearing on July 7, 2017, 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 timely submit 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 changes after I submit a Claim Form?

If you change your mailing address or contact information after you submit 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 is not mailed and postmarked, or submitted online here, before the deadline for claims, August 7, 2017. (Class members selecting Option C cannot submit their Claim Forms online and must mail 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 be 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 with the Claim Form.

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17. What if I didn’t receive a Claim Form via email?

Claim Forms will be emailed to customers who have provided their email addresses to Harbor Freight and agreed to receive promotions via email. If you didn’t receive a Claim Form via email or you deleted or misplaced it, you can download a Claim Form here.

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

Unless you exclude 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 do not exclude yourself and stay in the Class, regardless of whether you submit a Claim Form, you will agree 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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19. What if I don't want to be included in the Settlement Class?

To exclude yourself from the settlement, you must submit a request that includes the following:

  • Your name,
  • Your mailing address,
  • Your telephone number,
  • Your signature,
  • The date, and
  • A statement saying that you want to be excluded from the Harbor Freight sale price settlement.

You must mail your request for exclusion postmarked by June 7, 2017 to:

National Sale Price Settlement Exclusions c/o GCG PO Box 10351 Dublin, OH 43017-5551

Failure to follow these instructions for requesting exclusion will result in a waiver of the right to exclude yourself from the Class. If you ask to be excluded, you will not get any settlement payment, and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue, or continue to sue, Harbor Freight on your own in the future.

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20. If I exclude myself, can I get money from the Settlement?

No. If you exclude yourself, you will not receive a settlement payment, even if you submit a Claim Form.

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21. If I don't exclude myself, can I sue Harbor Freight later?

No. Unless you exclude yourself, you give up any right to file claims against Harbor Freight for the matters that this settlement resolves. You must exclude 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. Remember, the exclusion deadline is June 7, 2017.

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

If you do not exclude yourself from the Settlement, you can object to the Settlement if you don’t like some part of it. The Court will consider your views. To do so, you must send in a written objection in the case. The written objection should include all of the following:

  • Your name,
  • Your mailing address,
  • Your telephone number,
  • Your signature,
  • The date,
  • The specific reasons why you object to the settlement,
  • Any legal support (e.g., statutes or case law) you wish to bring to the Court’s attention,
  • Any evidence you may present at the Settlement Approval Hearing in support of your objection(s), including the names and addresses of witnesses and a summary of their proposed testimony, and copies of any written evidence, and
  • A statement that this is your Objection in the Harbor Freight sale price class action.

In order to be effective, Notice of Intent to Object must be filed with the Court by June 7, 2017, and copies sent to the following addresses:

Clerk of Courts Lake County Court of Common Pleas 25 North Park Place Painesville, OH 44077 and Dworken & Bernstein Co., L.P.A. Attn.: Nicole Fiorelli 60 South Park Place Painesville, OH 44077 and Baker & Hostetler LLP Attn.: Rodger Eckelberry 65 East State St. Suite 2100 Columbus, OH 43215

Any Class members who do not make their written objections in the manner outlined above will be deemed to have waived any objections. Objections cannot be submitted online.

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23. What's the difference between objecting and asking to be excluded?

Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Class and do not exclude yourself. Excluding yourself is telling the Court that you don’t want to be part of the Class. If you exclude yourself, you may not object because the case no longer affects you and you may not receive any payment from the settlement.

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24. What if I do nothing?

You have the right to do nothing. However, if you do nothing, you will not get any payment from this settlement. Unless you exclude 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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25. 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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26. How much in attorney’s fees will be paid to Class Counsel?

Class Counsel will ask 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 will also ask 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 at the Final Settlement Approval Hearing on July 7, 2017.

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27. Will I have to pay the lawyers?

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

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28. Should I hire my own lawyer?

If you want to be represented by your own lawyer, and have that lawyer appear in Court for you in this case, you may hire one and pay for your own lawyer yourself, but do not need to do so.

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29. What is the purpose of the Settlement Approval Hearing?

At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them at the hearing. 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. At or after the hearing, the Court will decide whether to approve the settlement.

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

The Court has scheduled a 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.

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31. Do I have to attend the Settlement Approval Hearing?

No. Class Counsel will answer any questions that the Court may have. But, you are welcome to attend at your own expense. If you send an objection, you don’t have to appear in Court to talk about it. As long as you filed and mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it’s not necessary.

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32. May I speak at the Settlement Approval Hearing?

To speak at the Settlement Approval Hearing, you must send a letter stating your “intent to appear,” or include it with any objection that you file. The Notice of Intention to Appear should include:

  • Your name,
  • Your mailing address,
  • Your telephone number,
  • Your signature,
  • The date,
  • Any evidence you may present at the Settlement Approval Hearing in support of your objection(s), including the names and addresses of witnesses and a summary of their proposed testimony, and copies of any written evidence, and
  • A statement that this is your Notice of Intention to Appear in the Harbor Freight sale price class action.

You must send your Notice of Intention to Appear postmarked by June 7, 2017 to:

Clerk of Courts Lake County Court of Common Pleas 25 North Park Place Painesville, OH 44077-3416 and Nicole T. Fiorelli, Esq. (Class Counsel) DWORKEN & BERNSTEIN CO., L.P.A. 60 South Park Place Painseville, Ohio 44077 and Rodger Eckelberry (Harbor Freight’s Counsel) BAKER HOSTETLER LLP 65 East State Street, Suite 2100 Columbus, OH 43215

Your Notice of Intent to Appear cannot be submitted online.

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33. 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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