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Dec 13, 2023

IKEA Assembles a Lawsuit Settlement

The screw-it-yourself store comes through!

By Ed Goldman

If I’m feeling a little giddy—but also wary at the same time—please forgive me. 

What happened is this: I received an unexpected windfall check the other day from an entity calling itself Richardson v. IKEA Claims Adjuster. That’s the giddy part. The wary part is that I now expect relatives I’ve never met, as well as creditors I’ve been able to avoid, to camp on my doorstep in the hope I’ll soon be sharing my bonanza with them. 

Edgy Cartoon

Lifestyles of the rich and fatuous

No chance of it, folks. That $25.04 is going right into my savings account, where I expect it to earn 0.57 percent interest starting immediately. This means that just 12 months from today, that $25.04 could well grow to $26.47. If I’m rounding up a tad, blame my delirium.

My first thought when my ship came in was that the $25.04 represented IKEA’s first payment to purchase of an idea I’d sent to the company sometime back. It was for something I called the IPS: Ikea Positioning System—to be deployed whenever a consumer got lost in the massive store whose layout and way-finding system were designed, I’m convinced, by Satan.

But no. According to print as tiny and indecipherable as you might find on, say, the instructions to assemble an IKEA bookcase, “If you made a purchase at an IKEA retail location using a credit card or debit card between October 18, 2017 and December 31, 2019, you may be entitled to benefits under a class action settlement.”

Those who sued the DIY/LYM (do-it-yourself/lose-your-mind) retail giant”) charged that IKEA “printed receipts for credit or debit card transactions at its retail locations that included more than the last 5 digits of the debit or credit card number.” This would be “in violation of the Fair and Accurate Credit Transactions Act,” it was further alleged. 

As a result, IKEA agreed to pay out more than $24 million bucks to those of us whose privacy was compromised and, even worse, had their feathers ruffled. IKEA, of course, admitted no blame. If so, I’m not sure why it unloaded all that dough. Maybe it was the company’s way of apologizing for its assembly instructions.

Math, as we’ve learned, is not my strong suit. (Not even the suits in my closet are strong. For instance, they don’t seem to resist shrinking every year after the holidays.) But to put this into something resembling perspective, my check for $25.04 equaled .00010433 of the total settlement.

I know what you’re thinking: Why not share the largesse at my fingertips with a charity, nonprofit arts group or social services agency—one of those that tell me, “For just 14 cents a day, you’ll be feeding and providing clean sheets for 17,000 dwarf hamsters”?

Well, I can be as charitable as the next guy—provided the next guy’s first name isn’t Ebenezer. But really: Wouldn’t my suggested invention, the Ikea Positioning System, benefit more people in the long run? 

Can we even begin to calculate how many people are, right at this moment, desperately trying to make their way through an IKEA store in search of the checkout line, a non-gender bathroom or its legendary Swedish-meatball concession?

My IPS could locate not only those El Dorados but also your Cadillac El Dorado, which you left somewhere far, far away long, long ago in the IKEA parking lot (alternate name: hellscape). It could help you find a salesperson who actually knows how to get you from the office furniture section to bedroom furniture section using one of the store’s arcane shortcuts: 

Looking for a Great Gift?

“See the sign for the marketplace? There’s an unmarked door there which’ll take you to the self-serve warehouse. From there, it’s just a few thousand yards to the showroom.”

“But we’re standing in the showroom.”

“I’m sorry, my manager is beeping me. Be right back.”

“No, wait—!”

I’m sure if I caught up with the salesperson I could bribe him to get me out of the store. After all, who couldn’t use an extra $25.04 in these inflationary times?

Ed Goldman's column appears almost every Monday, Wednesday and Friday. A former daily columnist for the Sacramento Business Journal, as well as monthly columnist for Sacramento Magazine and Comstock’s Business Magazine, he’s the author of five books, two plays and one musical (so far).

Yes, Virginia

A Weekly Blog by Virginia Varela

President, Golden Pacific Bank, a Division of SoFi Bank, N.A.

photo by Phoebe Verkouw

WHY DON’T MORE BANKS BANK ON WOMEN?

The good news is that United States women are now in more leadership positions than ever before. The not-as-good news is that we still have a long way to go. This is especially true of banking, my own industry.

Here’s a troubling fact: Only 7.5 percent of U.S. banks currently have a woman CEO. And, of that small group, only a few banks are represented by women of minority.

There are too few women in leadership roles, in spite of studies showing that:

  • Women on boards of directors improve a bank’s financial
    performance,
  • Gender-diverse teams, particularly among leaders, out-perform
    teams without gender diversity; and
  • Racially and ethnically diverse teams out-perform racially and
    ethnically homogenous teams.

The bottom line is that teams develop better ideas and are more
innovative when there are people from different backgrounds and identity groups at the table.

I’m very fortunate to have been a Bank President/CEO for more than a decade of my career. When I started my first gig as President and CEO in 2010, there were only an estimated 2.5% of US banks that had a woman CEOs.

Soon after the announcement of my first assignment as President and CEO at a community bank in Northern California, I received a beautiful bouquet of long-stemmed red roses with a card that read: “Virginia, Congratulations on your new role, and welcome to a very small elite group of women CEOs.” —Shirley Nelson, President and CEO, Summit Bank.

Shirley is my heroine as one of the first women bankers in northern California to break that glass ceiling. What an honor, and what a display of camaraderie and support for sister bankers in leadership!

There are some groups out there actively working to advance more women in banking, including American Bankers Association, and Bank on Women! I applaud these organizations and their efforts, as leadership should never be limited by gender.

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