Current:Home > MarketsPanera agrees to $2 million settlement for delivery fees: How to see if you're owed money-LoTradeCoin
Panera agrees to $2 million settlement for delivery fees: How to see if you're owed money
View Date:2025-01-11 14:44:53
If you've ordered food from Panera Bread that was delivered to your door, you may be owed some money.
Panera Bread has agreed to pay $2 million to settle a class action lawsuit accusing the bakery-café chain of misleading customers about prices and fees for delivery orders. But before you go looking to submit a claim, only those customers who ordered food for delivery between Oct. 1, 2020 and Aug. 31, 2021 are eligible for some settlement funds, according to Kroll Settlement Administration, which was appointed to oversee the settlement.
Under the settlement terms, customers can receive vouchers or an electronic cash payment. Panera, meanwhile, agreed to resolve the case under the condition that the company would not have to admit to any wrongdoing.
Panera did not immediately respond Tuesday morning to a message left by USA TODAY seeking comment.
Here's what to know about the lawsuit against Panera, and how you can submit a settlement claim.
New Oreo flavors:Oreo to debut 2 new flavors inspired by mud pie, tiramisu. When will they hit shelves?
What is the lawsuit against Panera about?
The plaintiffs who filed the lawsuit said they paid more than expected for delivery orders from Panera, accusing the the sandwich and soup restaurant of misleading customers about both the cost of delivery fees and menu prices.
Specifically, the lawsuit alleged that Panera would promise to provide either free or low-cost deliveries with a $1 or flat rate to customers who ordered through the company's mobile app or website. Instead, customers accused Panera of then loading on hidden fees, according to a lawsuit filed last year in Illinois.
Panera is alleged to have marked up food prices for delivery orders by 5% to 7%, the plaintiffs wrote. For example, a customer who ordered a sandwich through the mobile app may have been charged an extra $1 for delivery than if they were to pick it up in the store, the lawsuit states.
This extra fee was only displayed on the app or website after a customer chose delivery or pickup, the lawsuit alleged.
“This secret menu price markup was specifically designed to cover the costs of delivering food and profit on that delivery,” according to the lawsuit. “It was, in short, exclusively a charge for using Panera’s delivery service and was, therefore, a delivery charge.”
Chick-fil-A recently agreed to settle a similar class-action lawsuit alleging that the fast-food chain charged inflated prices for delivery during the COVID-19 pandemic. The company agreed to pay $4.4 million to settle the lawsuit, which was filed in Georgia in October 2023 and accused Chick-fil-A of hiking up its menu prices by 30% for delivery orders.
How can I file a claim for settlement money?
Those customers who believe they qualify for Panera's settlement money can file a claim online here by the deadline of June 10.
You'll need to provide proof of purchase to verify your claim, which can be the phone number that placed the order and an email notice if you received one.
Eligible customers can receive either two vouchers valued at $9.50 each for a free menu item at Panera, or an electronic payment of up to $12 via PayPal, according to the settlement website.
Separate litigation against Panera concerns its energy drinks
Panera Bread has also found itself at the center of multiple lawsuits since late last year regarding its line of highly caffeinated Charged Lemonade drinks.
Two lawsuits, filed in October and December of last year, allege the drink's caffeine contents caused the cardiac arrests that killed two separate people, while a third filed this year alleges the beverage caused permanent heart issues.
The drinks are still available for purchase on Panera's menu with the addition of product warnings. A judge recently denied Panera's request to dismiss one of the suits, signaling that these cases may take some time to resolve.
Contributing: Mary Walrath-Holdridge
Eric Lagatta covers breaking and trending news for USA TODAY. Reach him at [email protected]
veryGood! (31)
Related
- Trump ally Steve Bannon blasts ‘lawfare’ as he faces New York trial after federal prison stint
- Mississippi has a history of voter suppression. Many see signs of change as Black voters reengage
- Pentagon pauses support for congressional travel to Israel
- A nonbinary marathoner's fight to change anti-doping policy
- McDonald's Version: New Bestie Bundle meals celebrate Swiftie friendship bracelets
- Israel tightens encirclement of Gaza City as Blinken urges more civilian protection — or else there will be no partners for peace
- Ukraine minister says he wants to turn his country into a weapons production hub for the West
- Bob Knight: 'He never really let the world see the good side.' But it was there.
- American Idol’s Triston Harper, 16, Expecting a Baby With Wife Paris Reed
- How a Texas teacher helped students use their imaginations to take flight
Ranking
- 'The Penguin' spoilers! Colin Farrell spills on that 'dark' finale episode
- CB Xavien Howard and LT Terron Armstead active for Dolphins against Chiefs in Germany
- 'Wait Wait' for November 4, 2023: With Not My Job guest Dr. Rae Wynn-Grant
- Putin revokes Russia's ratification of nuclear test ban treaty
- Love Actually Secrets That Will Be Perfect to You
- Early returns are in, and NBA's new and colorful in-season tournament is merely meh
- Luis Diaz sends a message for his kidnapped father after scoring for Liverpool
- Matthew Perry Foundation launched to help people with drug addiction
Recommendation
-
2025 NFL mock draft: QBs Shedeur Sanders, Cam Ward crack top five
-
CB Xavien Howard and LT Terron Armstead active for Dolphins against Chiefs in Germany
-
Tola sets NYC Marathon course record to win men’s race; Hellen Obiri of Kenya takes women’s title
-
Lawsuit claims Russell Brand sexually assaulted woman on the set of Arthur
-
When do new 'Yellowstone' episodes come out? Here's the Season 5, Part 2 episode schedule
-
US, Arab countries disagree on need for cease-fire; Israeli strikes kill civilians: Updates
-
New vehicles from Detroit’s automakers are planned in contracts that ended UAW strikes
-
Record-breaking Storm Ciarán kills at least 5 in Italy, trapping residents and overturning cars: A wave of water bombs