When we shop in a store or online, it is common today for
merchants to invite us to join "loyalty" programs that
encourage us to become repeat customers by offering discounts or
other incentives. Often these programs include "terms and
conditions," to which most of us pay little attention.
That casual attitude can be a mistake, as demonstrated by a
lawsuit that was recently decided by the California Court of Appeal
(Costa v Road Runner Sports).
In 2016, Michael O'Connor purchased a pair of athletic shoes
and socks at a Road Runner Sports store in San Diego, one of 35
outlets the chain operated in California.
As part of the purchase, he paid less than $2 to enroll in the
chain's "VIP Family Rewards Membership" loyalty
program. That membership, which he used again the following year,
gave him a 10% discount plus a 5% cash-back incentive –
benefits that more than covered the program's initial cost.
