Clean Rite Misrepresents Value of Laundry Cards, Class Action Suit Says

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A proposed class action alleges Clean Rite Centers has misrepresented the value of its laundry cards, which are allegedly saddled with “unfair and deceptive conditions” that result in effectively hidden fees.

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The 16-page Clean Rite lawsuit says that a consumer can purchase for $3 a non-refundable laundry card that can be filled with up to $80 at a time for use with the company’s laundry machines. The suit claims that Clean Rite does not reveal prior to purchase that any remaining balance on the cards is non-refundable.

Per the case, Clean Rite charges varying fees for different size washers and dryers, amounts “subject to change” at the company’s whim—and neither the $80 card limit nor the cash increments that can be reloaded on a Clean Rite card are divisible by the laundry fees, the suit says. According to the complaint, the refill amounts allowed for the laundry cards are not random and are calculated by Clean Rite to “always produce a remainder which [Clean Rite] then keeps.”

The case contends that the non-refundable remaining balances left on Clean Rite laundry cards function as a hidden fee that is not disclosed to buyers. Even after the point of sale, the suit says, Clean Rite does not reveal that the sum of its policies, the available refill amounts, and the price of doing laundry creates an inaccessible remaining balance on each card.

“This refund policy, in conjunction with Defendant’s policies that result in users occasionally needing to purchase new cards, cause Clean Rite customers to accumulate countless Laundry Cards with balances that are all inaccessible,” the lawsuit alleges.

The filing contests that Clean Rite’s laundry card practices violate New York’s General Business Law. Namely, the inaccessible remaining balance on the laundry cards qualifies them as “gift cards” under the state law, which requires that policies concerning remaining balances be printed conspicuously on the gift certificate, its packaging or an accompanying document, the suit shares.

The laundry cards also violate New York law given that those with a remaining value of less than $5 are unable to be redeemed upon request for their cash value, the lawsuit adds.

“In direct violation of federal law, Defendant’s policies related to Laundry Cards lead to remainder balances that constitute service fees that are not clearly and conspicuously described on the store gift card. Each time money is added to the Laundry Card, a remainder balance is generated that constitutes a periodic fee. The amount of this fee is not disclosed prior to purchase or at any other point.”

The Clean Rite laundry card lawsuit looks to cover all United States residents who possess laundry cards maintained by Clean Rite.

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