The plaintiff, a longstanding customer from New Jersey, asserts in the complaint that Nestlé Waters regularly breaches its contracts with water delivery customers nationwide by assessing late fees on their accounts during a grace period even when customers have made timely payments, and charging an excessive late fee of up to 75% or more.
Steven L Wittels, a founder and partner of Sanford Wittels & Heisler and lead attorney for the plaintiffs, called the water giant’s practices the “slipperiest” he has ever seen.
Wittels said: “What good is a grace period if you soak the customers with a late fee before the grace period even ends? To add insult, the water company’s punitive late fee aims to drain its customers of hard-earned money.”
The suit asks the court to certify the lawsuit as a class action because Nestlé Waters’ actions constitute a breach of contract and violation of the Consumer Fraud Act in New Jersey and all other states where the company conducts business. The plaintiff is seeking an award in excess of $50m in damages and costs for the class.
Jeremy Heisler, co-counsel for the plaintiffs, said: “Under the law, a late fee must be reasonable. Nestlé Waters’ flat $15-20 late fee fails that test because the company charges the same amount no matter how large the fee is in relation to the amount overdue, or how many days the payment is late. They charged our customer nearly 50% of the monthly payment due. The late fee is simply a penalty.”
Under its own written policy, Nestlé Waters provides a 10-day grace period after the due date, for customers to make payments on their accounts. Nestlé’s policy further says it ‘may’ assess a late fee only after the grace period has expired. Rather than adhering to this policy, Nestlé routinely adds a $15 late fee to customers’ accounts on the first day of the grace period.
Nestlé Waters conducts its billing scheme through its bottled water divisions, including Poland Spring Brand 100% Natural Spring Water, Arrowhead Brand 100% Mountain Spring Water, Deer Park Brand 100% Natural Spring Water and Perrier.
The complaint asks the court to grant class certification, award compensatory damages for the plaintiffs, treble damages, and all costs and disbursements related to the suit, as well as to enjoin Nestlé Waters from continuing to implement its ‘unlawful’ trade practices and schemes.
Source: Sanford Wittels & Heisler
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