Class Actions and Consumer Product Settlements: The Proof is in (the Receipt For) the Pudding

Consumers don't keep their receipts. This poses a unique challenge in consumer product class actions, especially when parties seek the Court's approval of a settlement that requires a receipt as proof of purchase. And if the settlement doesn't require a receipt, what proof of purchase does it ask for? By the time a settlement is reached, how likely is it that consumers will accurately remember the dates and quantities of their purchases or how much they spent?

American and Canadian courts answer these questions in different ways. As manufacturers of consumable food and beverages are increasingly the targets of class actions south of the border, the U.S. courts seek the comfort of a receipt; in Canada, the courts seem more willing to accept affidavits.