Harrah's Advertisement Found Misleading in Class-Action Lawsuit

Over 80,000 players who received birthday mailings from Harrah’s Entertainment Inc. are entitled to $100 in damages, thanks to a class-action lawsuit filed by Debra Smerling.

The case started when Smerling took a trip to Harrah’s Atlantic City on Saturday, August 9, 2003. Smerling had a $15 birthday voucher – part of the casino’s Total Rewards loyalty program – that was redeemable on Sunday, August 10. Smerling waited until after midnight, and at 12:30 am, she attempted to redeem the voucher.

However, casino staff refused to honor her voucher, claiming that the offer only began at 8:00 am. Smerling wasn’t interested in waiting until morning, and instead decided to file a lawsuit.

Now, seven years later, a state Superior Court judge in Middlesex County has ruled that Harrah’s violated New Jersey’s truth-in-advertising laws by failing to state the 8:00 am restriction. About 350,000 people will be receiving notices alerting them to the fact that they qualify to be a part of the class-action suit. Approximately 80,000 people successfully redeemed their vouchers, and are entitled to damages of $100 each.

Other players may also be able to collect damages, but only if they were denied the opportunity to use their vouchers because they attempted to use them before 8:00 am. These players have the right to file their own individual lawsuits.

According to Andrew Wolf, one of the attorneys for the plaintiffs, the result was exactly what Smerling was looking for.

"We are pleased at the result, that Ms. Smerling was vindicated and that the court found that Harrah's violated New Jersey law," Wolf said. "They can have whatever policy they like, but they have to let people know about it."

However, Harrah’s was disappointed in the ruling, with a spokesperson calling it “an incorrect application of the law.” While the voucher did not specifically say that it was only redeemable at certain hours, it did state that it must be presented at the “Total Rewards Center,” and that this center was only open from 8 am to midnight on Sundays.

In all, the lawsuit could cost Harrah’s up to $8 million or more, depending on how many of the eligible recipients collect their $100, and the number of additional lawsuits filed.