[A2k] First of its kind lawsuit for overpriced textbooks

[Manon Ress]

If need further information or the actual lawsuit filed in Federal
Court, contact  Thomas F. Rebman, Dollars 4 Scholars, Chief Executive
Officer at REBMANTHOMAS@aol.com



2 at DBCC sue on book prices, seek $5 million
http://www.orlandosentinel.com/orl-
collegebooks2506nov25,0,6328175.story?page=2&track=mostemailedlink

Pedro Ruz Gutierrez | Sentinel Staff Writer
Posted November 25, 2006

In a first-of-its-kind lawsuit that could affect thousands of college
students who think they are overcharged for textbooks, two Daytona
Beach Community College students have sued the nation's largest
collegiate-bookstore chain and their school.

The class-action suit, filed in Orlando's federal court, alleges
unfair and illegal pricing practices and seeks to recover at least $5
million in damages. It accuses the Follett Higher Education Group and
DBCC of overcharging students pennies on each used-book sale and
underpaying them when buying books back.

Though that may amount to only a few bucks each semester, the
students argue that, when multiplied by thousands of students at each
of the company's more than 750 bookstores, it adds up to millions.

Co-plaintiffs Thomas Rebman and Danny Brandner also say the college
is "complicit" in the textbook company's actions because through
DBCC's contract with Follett, it receives up to 10.5 percent of all
bookstore revenues annually. In a recent 12-month period, the college
reported collecting at least $400,000 in commissions from Follett's
operations on the school's five campuses.

"This isn't about me or Mr. Brandner," Rebman said. "It's that still
to this day, students are overcharged . . ., and they [DBCC
administrators] refuse to enforce the contract."

The suit -- filed in late September -- is unique, according to
attorneys and industry experts, and may have implications for
thousands of students nationwide if a judge allows it to go forward
as a class action.

Textbook prices have rankled college students for years. Student-
government coalitions and advocacy groups in 14 states launched a
campaign in 2003 that included a push to persuade colleges to
negotiate better prices with book publishers.

A Government Accountability Office report in 2005 found college-book
prices have increased at twice the rate of inflation in the past two
decades. A congressional advisory committee is undertaking a yearlong
study to find ways to rein in prices.

National Association of College Stores figures show used books
accounted for $1.9 billion in sales during the 2004-05 academic year.
New books accounted for $4.4 billion during that same time period.

"Mr. Rebman and our law firm are seeking to recover for every student
who was overcharged . . . or was underpaid when they sold back their
books," said Marc Wites, a South Florida attorney who specializes in
class-action suits.

'We are in compliance'

Pam Goodman, a Follett Corp. spokeswoman, would not address the
lawsuit's allegations.

"Follett believes this suit is without legal basis," said Goodman,
reading a company statement.

Goodman said she couldn't discuss specific store operations, but the
company has "different pricing" at hundreds of stores nationwide. The
Oak Brook, Ill., company does more than $2 billion in annual sales
through its five education-related divisions.

"Follet's pricing is governed by the agreements we have with the
individual institutions we serve," Goodman said. "And we take great
care to ensure we are in compliance with the terms."

DBCC officials would not comment, referring all questions to Goodman.

The five-count complaint alleges breach of the contract between
Follett and the college, violations of the Florida Deceptive and
Unfair Trade Practices Act and a civil conspiracy.

Before the fall semester began in August, Rebman and Brandner say,
their college bookstore illegally rounded up the prices of used books
to the next 25-cent increment. Used books that should have cost
$88.69 and $85.31 were sold to them for $88.75 and $85.50,
respectively, they argue.

And when they sold books back to the store, they say the store paid
them less than 50 percent of the new retail price as required by the
contract. Examples cited in the suit include the return of a college-
algebra book that cost $118.25 new but was bought back by the store
for $56.25, or less than half its new price. In that transaction, the
student should have received $59.12, the suit says.

An online check of Follett's DBCC bookstores this week showed that
used books required for next semester's classes are still being
marked up to the nearest quarter. Prices for used-book buybacks were
not available.

Earlier this year, DBCC and Follett -- in response to student
complaints -- each conducted audits of the campus bookstore. College
officials refused to discuss the results with the Sentinel. A joint
statement released by Goodman, Follett and DBCC said "audits
confirmed that Follett is abiding by the terms of its agreement."

A legal expert said the lawsuit may impact Follett's operations at
its more than 750 college bookstores in the U.S. and Canada. In
Florida, Follett has a presence on at least 60 campuses.

'A pretty good hurdle'

Stanley Talcott, a professor and former dean of Barry University's
law school, said the challenge facing the students and their
attorneys is to prove they can represent peers beyond their campus.

"They've got a pretty good hurdle getting this certified as a class-
action suit," he said. "If they can expand it beyond the Daytona
Beach Commu- nity College students, they'll certainly get Follett's
attention."

Rebman, 45, briefly worked at a Follett bookstore in 2004 and will
transfer to the University of Central Florida next semester to
continue his pursuit of becoming an elementary-school teacher.

The former 23-year Navy veteran from New Smyrna Beach also has set up
two Web sites -- falconbooksdirect.com and
goldenknightsbooksdirect.com -- to allow DBCC and UCF students to
exchange, buy and sell books among themselves.

Brandner, an Edgewater resident who Rebman said is in his 20s, could
not be reached for comment.

Albert Greco, a business professor at Fordham University who follows
the college-textbook industry, said bookstores are "hardly price
gouging" and instead provide high-quality books at low prices.

"We live in the age of litigation, so the lawsuit doesn't surprise
me," Greco said. He said Follett is a reputable company and found the
students' legal claims "interesting."

Holland & Knight LLP attorneys, who are representing Follett and the
college, have already filed a motion to dismiss the lawsuit, saying
the students are not parties to the contract and are attempting to
paint "themselves as third-party beneficiaries" of the contract.

A federal judge next will decide whether the student's claims should
apply to a larger student body and can be certified as a class action.

Pedro Ruz Gutierrez can be reached at pruz@orlandosentinel.com or
407-420-5620.

************************************************
Manon Anne Ress
manon.ress@cptech.org,
www.cptech.org

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