There have been several lawsuits filed against The Cheesecake Factory, Inc., a popular American restaurant chain, alleging a variety of wrongdoings, including:
1. Deceptive Marketing Practices
In 2016, a class action lawsuit was filed against The Cheesecake Factory alleging that the company engaged in deceptive marketing practices by using misleading pricing and failing to disclose important information about its products. The lawsuit specifically focused on the company’s practice of printing the first six and last four digits of customers’ credit card numbers on receipts, which violated the Fair and Accurate Credit Transactions Act (FACTA).
The lawsuit was settled in 2022 for $4.75 million, with the company agreeing to change its receipt printing practices and provide compensation to affected customers.
2. Labor Law Violations
In 2014, the California Labor Commissioner’s Office fined The Cheesecake Factory $4.5 million for labor law violations, including failing to pay overtime wages, providing inadequate meal and rest breaks, and making unauthorized deductions from employees’ paychecks.
The company has also been the subject of several class action lawsuits alleging wage theft, misclassification of employees, and retaliation against workers who speak out about unfair labor practices.
3. Food Safety Violations
The Cheesecake Factory has been cited for numerous food safety violations by health departments across the country. These violations have included improper food handling and storage practices, inadequate pest control measures, and failure to maintain proper sanitation standards.
In 2017, a Salmonella outbreak linked to The Cheesecake Factory sickened over 30 people in 15 states. The company was ultimately fined $2.5 million by the Food and Drug Administration (FDA) for its role in the outbreak.
4. Unfair Business Practices
In addition to the specific allegations mentioned above, The Cheesecake Factory has also been accused of engaging in a variety of unfair business practices, such as:
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Charging excessive fees for its services
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Providing inadequate customer service
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Failing to address customer complaints in a timely manner
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Engaging in deceptive pricing and marketing practices
These allegations have led to several lawsuits and consumer complaints against the company.
Conclusion
The Cheesecake Factory has faced numerous legal challenges over the years, ranging from deceptive marketing practices to labor law violations. While the company has settled some lawsuits and implemented changes in response to regulatory action, it continues to face criticism for its business practices. Consumers should be aware of these issues and exercise caution when dining at The Cheesecake Factory or doing business with the company.
