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Posted: Monday, 13 October 2008 5:45PM

Foot Locker Sued in N.J. over Gift-Card Policy

NEWARK, N.J. (AP)  -- A New Jersey man is taking on athletic apparel giant Foot Locker over the store's gift card policies, charging in court papers that they violate New Jersey's consumer laws.

In a lawsuit filed in late August in Middlesex County, Sayreville resident Joseph Vona claims that Foot Locker's use of so-called dormancy fees _ a small fee charged to the gift card if it hasn't been used for a period of time _ are contrary to a state law passed in 2006 under the auspices of the Consumer Fraud Act.

Attorneys representing Foot Locker filed last week to have the case moved from state Superior Court to U.S. District Court.

Vona is seeking class-action status for anyone who bought a gift card for purchases at Foot Locker or one of its spinoffs: Lady Foot Locker, Kids Foot Locker and Champs Sports.

According to court filings, Foot Locker estimated it has sold about 50,000 gift cards in New Jersey since April 2006, when it instituted its policy of charging a fee against the unused value of the cards if they hadn't been used for 12 consecutive months.

Vona purchased his $25 card from a Pathmark supermarket in Old Bridge in April 2007.

Among the terms and conditions on the back of the card _ which was photocopied for the court filing _ Foot Locker states it can deduct a service fee of $1.50 per month from the value of the card for nonuse over 12 consecutive months.

The statement adds that the terms and conditions can't be changed ``except when legally required.''

``We believe it's a fairly straightforward case,'' said Andrew Wolf, an attorney representing Vona. ``We feel we have a good claim.''

Vona did not return a telephone message Monday.

Many states have imposed limits on dormancy fees or banned them altogether. New Jersey's Gift Card Act prohibits companies from charging the fees until 24 months have passed between purchases, and limits the fees to $2 per month.

The statute also requires notice of any fees to be written on the card or receipt in 10-point type or larger, a requirement Vona claims Foot Locker violated by using type that was significantly smaller.

A message left for a Foot Locker spokesman was not returned Monday, and Robert Leonard, an attorney representing the company, declined to comment on the case, citing company policy.

New York-based Foot Locker operates about 3,700 stores in 21 countries in North America, Europe and Australia.


TM & Copyright 2008 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO & EYE Logo TM & Copyright 2008 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. TheAssociated Press contributed to this report.
 
 
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