By Linsey B. Knerl

Rarely have I seen such an ambiguous disbursement of settlement funds as in this recent case involving several makeup companies and retail stores. The actual class-action lawsuit involves a time period going back as far as 1994, but this recently authorized “settlement” gives me the impression that many more than just the “victims” will be clamoring for some freebies.

What’s it about? It’s really hard to tell, at first glance. The actual website doesn’t give the usual rundown of links (including the official notice, FAQ’s, and court documents). It is a one-page summary of the benefits assigned to those who fall into the class, which could, theoretically, include nearly EVERYONE.

“You are a member of the class if you are currently a resident of the United States who purchased Department Store Cosmetics in the United States during the class period, which products were made, distributed and/or sold by the Manufacturer Defendants or Retailer Defendants listed below. You are not a member of the class, even though you bought the covered products during the relevant time period, if you fall into one or more of the following categories: all employees, officers, directors or agents (including attorneys) of any defendant, as well as any judge, justice or judicial officer presiding over this matter, and each such person’s immediate family.”

So, just to be sure you understand, if you have purchased a high-end retail cosmetic from any of the brands or retailers on the website (they include Chanel, Christian Dior, Clarins, and Stila, among many others) during the period of May 29, 1994 through July 16, 2003, you are eligible for the payout.

What’s the payout? Beginning on January 20, 2009, and lasting for 7 days (or until they run out of products), class members are entitled to (1) One free cosmetics product from the same manufacturer and bought at the same retail store as the original product bought during the timeframe in question. (So if in 1999, you bought a Chanel product at Sak’s, you would need to go back to Sak’s and get the one offered product manufactured by Chanel – in this case, a 3.4 oz. Coco Mademoiselle body lotion .) There will be NO rain checks, so if you anticipate getting an item, you better move quick!

This leads me to the question, why? What happened ten years ago that is resulting in “$175 million in free cosmetics products” for anyone who walks up and asks for it? The original suit, settled in 2005, alleges that the stores fixed the price of cosmetics by limiting the number of such goods in their inventory and agreeing not to offer sales, in violation of antitrust laws.

When the suit was approved, those who filed claims were to be alerted of the date of the free product reimbursement by mail. I’m sure they are all receiving post cards. But something else is happening too. The settlement is appearing on many freebie and deal boards and websites under the heading of “Free Cosmetics Day,” meaning that even those who have never purchased high-end makeup will be standing in line to get their hands on the goods.

If you were part of the original suit, or have actually purchased the products in question during the time period named in the action, I say, “Go for it.” Hopefully it won’t be a panic at the makeup counter to get hold of some free stuff. We’ll see.