Independent Bookstore Alleges Unfair Competition by WVU and Barnes & Noble
West Virginia University and its bookstore, which is managed by Barnes & Noble, have been sued by a competitor on the grounds that WVU unfairly reserves funds from students receiving financial aid, and requires the money to be spent at its bookstore for the purchase of textbooks and other items. The Book Exchange, an independent bookstore, filed the complaint on June 8 in the Circuit Court of Monongalia County, West Virginia (Morgantown).
The Book Exchange alleges several causes of action, including violations of West Virginia's Antitrust Act, Unfair Trade Practices Act, Consumer Credit and Protection Act, and Electronic Mail Protection Act (the last because WVU communicates with the students via e-mail). Here's the complaint, courtesy of plaintiff's counsel, Bader C. Giggenbach.
According to the (Morgantown) Dominion Post, WVU claims that it gives students two opportunities to opt out of participating in the program, which reserves up to $500 per semester from each financial aid student as part of the Reserve Convenience Account. If a student doesn't opt out, the money can be spent only at the bookstore. According to the article, about 3,000 students participated in the program last fall; any unspent funds are refunded about two weeks after classes start.
The Book Exchange alleges that as a result of WVU's program, it has lost $2 million since WVU's original contract with Barnes & Noble began in 2001, and claims that WVU is motivated by a "malicious desire to destroy The Book Exchange's business." In addition to compensatory and punitive damages, The Book Exchange asks for a preliminary injunction preventing WVU from proceeding with its "interface" (the use of a student ID to debit a student's financial aid account and transfer the proceeds to Barnes & Noble) and automatic withholding because on July 23, 2007, WVU will e-mail students about the program and begin its implementation for the fall 2007 semester.
The Book Exchange alleges several causes of action, including violations of West Virginia's Antitrust Act, Unfair Trade Practices Act, Consumer Credit and Protection Act, and Electronic Mail Protection Act (the last because WVU communicates with the students via e-mail). Here's the complaint, courtesy of plaintiff's counsel, Bader C. Giggenbach.
According to the (Morgantown) Dominion Post, WVU claims that it gives students two opportunities to opt out of participating in the program, which reserves up to $500 per semester from each financial aid student as part of the Reserve Convenience Account. If a student doesn't opt out, the money can be spent only at the bookstore. According to the article, about 3,000 students participated in the program last fall; any unspent funds are refunded about two weeks after classes start.
The Book Exchange alleges that as a result of WVU's program, it has lost $2 million since WVU's original contract with Barnes & Noble began in 2001, and claims that WVU is motivated by a "malicious desire to destroy The Book Exchange's business." In addition to compensatory and punitive damages, The Book Exchange asks for a preliminary injunction preventing WVU from proceeding with its "interface" (the use of a student ID to debit a student's financial aid account and transfer the proceeds to Barnes & Noble) and automatic withholding because on July 23, 2007, WVU will e-mail students about the program and begin its implementation for the fall 2007 semester.
