Coupon settlement
A coupon settlement pays class members with coupons, vouchers or discounts on the defendant's products instead of cash.
Also called: voucher settlement, coupon relief, coupon class action settlement
A coupon settlement pays class members with coupons, vouchers or discounts on the defendant's products instead of cash.
What it means
A coupon settlement is a class action settlement where some or all of the relief is coupons, vouchers or discounts on the defendant's own products or services, rather than cash. You only get the value if you buy from the company again.
Federal law adds extra checks for these deals. Under the Class Action Fairness Act, the part of a lawyer fee tied to coupons must be based on the value of the coupons that class members actually redeem. It cannot be based on the face value handed out. A judge can approve a coupon settlement only after a hearing and a written finding that it is fair, reasonable and adequate. The court may also require that part of the value of unclaimed coupons go to charitable or government groups.
Some settlements let you choose between a coupon and cash. The notice shows what each option is worth.
What it means for you
Before you claim, ask a few questions. Can you choose cash instead? When does the coupon expire? Does it have a minimum purchase or limits on what it covers? Would you ever use it? A coupon is only worth something if you would shop with the company anyway. If you would not, a cash option may make more sense. Terms differ a lot between settlements, so read the notice rather than guessing.
Example
Say a restaurant chain settles a case over mislabeled menu items by giving each class member a coupon for $10 off a $25 order. If you eat there every month, that is real savings. If you never go back, it is worth nothing to you. Because the coupon part of the lawyers' fee must be based on coupons actually redeemed, the deal's value depends on how many people use them.
FAQ
Only if the settlement offers it. Some pay cash, some pay only coupons, and some let you pick. The notice and claim form list your options and what each is worth.
Yes, but federal law adds extra scrutiny. A judge may approve one only after a hearing and a written finding that it is fair, reasonable and adequate. A lawyer fee tied to coupons must also be based on the value of the coupons redeemed.
Related terms
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.