News

Suit claiming KFC coupon fraud moves forward

July 12, 2010

KFC hoped to generate a strong trial for its grilled chicken in May 2009 when it partnered with Oprah Winfrey for a downloadable coupon offer for a free meal. Now the company is headed to court after a U.S. District Court judge ruled that four cases filed and consolidated against the company have merit.

The judge denied KFC's request to dismiss the case, ruling that the consumers have posed a “plausible claim for common law fraud,” reports Businessweek.

About 10 million of the coupons for a free Kentucky Grilled Chicken dinner were downloaded, and many stores were soon overrun with customers. Within two days, KFC rescinded the downloadable coupon offer and required customers to mail in their coupon for a rain check offer. Several outraged customers filed lawsuits claiming the promotion was an example of bait and switch.

From the story:

"The promotion turned out to be too much of a good thing," according to a consolidated complaint filed with the court in February. About 5.7 million people were allegedly denied free meals otherwise retailing for $3.99, making the suit worth more than $22 million.