Dawn:
Look, I wasn't arguing with you. I support you in everything. And I understand your frustrations & apparent anger with iolo. But I think it is necessary to clarify things so as not to potentially mislead lay-persons about the class action experience. I certainly wouldn't want someone to read any of this & draw improper conclusions.
For instance, usually, it is the class action firm that investigates before initiating the lawsuit (in my experience). So its not that individual consumers need to do it on their own b4 contacting a firm.
Also, while I don't disagree with you that in many class actions that victims usually don't recover all of their losses (maybe not even the cost of the product), I think it is unfair to suggest that lawyers are the ones who get most of the benefit. Yes, we are compensated for our time & costs; and rightfully so because of the time and investment involved in complex litigation (in some cases just the expenses can exceed $1 million). At the Federal level (most of my class action experience), these costs & hourly rates are regulated & must be substantiated to the court - even when they are part of a settlement agreement. State rules can obviously vary.
So, yes consumers rarely fully recover the total harm caused them - but this is much better than nothing, especially remembering the public policy underlying class actions: that individual suits are cost prohibitive to consumers. The costs of individual litigation usually far outweighs the harm suffered not making it worthwhile. Class actions resolve this issue & they also resolve the potential burden on the court system.
I think the main point here is that there are any number of paths a consumer can take. Like you point out, immediate options are filing a complaint with their State Attorneys General Office, getting their CC company to intervene, and the Better Business Bureau. Another option is to contact a lawyer that deals with consumer fraud and/or contact a class action firm to get their help. But don't rule out the class action option. Many class actions are begun by one or two people - and then after investigation by the firm they frequently expand into large numbers.
For example: One case I worked on was initiated by one person's situation. After investigation we found others that were seriously harmed & a pattern of misleading behavior by the defendant corporation. In the end, the class consisted of over a million persons and the settlement reached was $1.7 billion (yes - billion) against the defendant insurance company. Many persons in the class (some harmed more than others) were able to arbitrate their claims under the settlement by simply filling out a claim form & supplying their policies & other documents.
Plus, dare I cite product liability class actions like the Copper IUD that resulted in many victims (including spouses w/ loss of consortium claims) getting substantial rewards under the settlement to cover for the physical & emotional harm suffered.
Admittedly, these situations are not the commonplace experience - but I think the moral to the story is that one can't rule anything out, or make discouraging statements about a viable option, until the facts are known. And the facts aren't usually fully known until after investigation.
With the iolo situation, the facts aren't yet in. But there seems to be enough for someone to seek legal consultation on the matter. And, I would encourage this. I hope this clarifies things.
With Respect,
Larrylesq