National Association of College Stores Asks Federal Judge to Dismiss Lawsuit Filed by Amazon.com

Challenges Internet giant to join college stores in providing students substantiated savings on textbooks

OBERLIN, Ohio, May 31, 2011 /PRNewswire-USNewswire/ -- The National Association of College Stores (NACS), Oberlin, OH, has filed a motion in U.S. District Court for the Western District of Washington State asking for dismissal of a lawsuit brought by Amazon.com Inc. that accuses NACS of attempting to limit Amazon's ability to sell textbooks to students.

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NACS sought a nonbinding, advisory opinion from the National Advertising Division (NAD) of the Better Business Bureau that certain Amazon ads were unsubstantiated and misleading, and Amazon responded by filing a lawsuit seeking declaratory relief in federal court.  

NACS initiated the NAD proceeding in order to ensure that accurate information is provided to students so that they may make informed purchasing decisions. NAD decisions are completely voluntary, and although most parties voluntarily comply with NAD findings, there is no way to compel compliance. Although NACS believes that Amazon's case should be dismissed, if the court does not dismiss the case, NACS will vigorously litigate the matter and require Amazon to prove to the court that its ads are fact-based and not unfair or misleading.

Champions of Affordable Textbooks

NACS and its members are committed to providing students affordable access to textbooks and accurate information on which to base their textbook purchase or rental decisions. NACS asked Amazon to provide an explanation of its advertising statements, and only initiated the NAD proceeding when Amazon refused to respond. NACS had hoped that Amazon would join with NACS in adopting a commitment to substantiating advertising claims so that students have the accurate facts they need to make textbook purchasing decisions.  

Charles Schmidt, NACS director of Public Relations, noted that "Through fair and well-defined return policies, guarantees that the correct edition is available, and a commitment to provide students with a convenient one-stop-shop for all of the required course materials on a campus, college stores are a safe and reliable resource for college students. They also go farther than other textbook sources by supporting the academic mission and culture of the institutions they represent through funding scholarships, employing students, and in many cases giving back to the local community. The majority of our member stores are owned by the college or university they serve."

Schmidt also noted that college stores typically offer many options to students:

• Affordable used textbooks that can save students significant money off the new book price
• Strong buyback programs that can pay students a large percentage of the cost of a new textbook (that is a normally a CASH payment, not in the form of a gift card, such as in Amazon's model)
• The low-cost textbook rental option
• Discounts on textbooks as special promotions
• Reward and rebate programs

College stores also work with faculty to educate them about the role professors can play in keeping textbook costs more affordable, and in some cases partner with faculty to produce custom course packs that can save students significant dollars by eliminating the purchase of materials that are never used.

Defender of Fair Advertising

NACS takes its obligation to represent college stores and the students they serve seriously, and that includes the obligation of honesty. In fact, NACS developed and urges all its 3,100 member stores to follow a Recommended Advertising Guidelines for Course Materials Sales and Rentals.

NACS filed the NAD action because it is concerned about students receiving accurate information.  Rather than fight about it in court, NACS would rather encourage Amazon to join in adopting a commitment to substantiated advertising claims to provide students with the accurate facts they need to make responsible textbook purchasing and renting decisions.

To access a copy of NACS formal response, click here.

To access a copy of NACS' NAD filing, click here.

For more facts and figures on college stores, click here.

For a copy of NACS Recommended Advertising Guidelines click here.

About NACS

Headquartered in Oberlin, Ohio, the National Association of College Stores (NACS) is the professional trade association representing college stores. NACS represents more than 3,100 collegiate retailers that serve America's college students while supporting the academic missions of higher education institutions. Go to http://www.nacs.org/advocacynewsmedia/pressreleases.aspx

SOURCE National Association of College Stores