Case: Hernandez v Radio Systems Corporation (No. 5:22-cv-01861-JGB-DTB)
In a recent class action matter against PetSafe and parent company Radio Systems Corporation (RSC), Plaintiff Steven Hernandez represented a class of California purchasers of certain PetSafe electronic collars. Plaintiffs alleged that RSC engaged in false advertising with packaging and marketing materials displaying claims that the collars are scientifically proven “safe” and “harmless” and recommended by veterinarians and professional dog trainers for preventing unwanted pet behaviors.
The pet containment product delivers electric shocks to pets via a collar worn around their necks. Plaintiff alleged that PetSafe’s electronic collars could cause physical and psychological harm to pets.
To determine the overpayment (or “price premium”) attributable to the false representation used in the labeling of its electronic collars, Applied Marketing Science, Inc. (AMS) conducted a conjoint analysis survey that quantified the value of the misrepresentation on the product packaging. The analysis provided empirical evidence that class members overpaid for the electronic collars due to the misrepresentation.
PetSafe agreed to a $1.9 million class action lawsuit settlement. This decision to settle reinforces the potential influence of compelling survey evidence to inform damages estimates and help drive settlement negotiations.
In some cases, preliminary findings from a conjoint analysis survey may be sufficient to drive or inform mediation or settlement decisions in class action matters, providing a cost-effective alternative to a full conjoint analysis survey and expert report.
Conjoint analysis is a survey technique and discrete-choice model used in market research to measure consumer preferences for products and services. AMS has been involved in dozens of class action studies where conjoint analysis has been used in support of class certification and settlement.
To learn more about AMS Litigation Support services, surveys for class action litigation matters, or settlement report services, please contact Patty Yanes.