Consumer fraud, false advertising, and latent-defect product class action cases often seek to recover the difference between the market price actually paid and the true market price that reflects the impact of the unlawful, unfair, or fraudulent business practice: the “price premium.” In evaluating price premium damages, plaintiff and defense experts often disagree about how and to what extent economic models are supposed to–and do–take into account both the demand and supply side of market. Separating the effect of the relevant claims from the effects of numerous other confounding factors must be done in accordance with rigorous scientific standards.

In determining whether to certify proposed consumer classes, courts often evaluate price premium models proposed by plaintiff and defendant experts. This evaluation is often critical in the class certification decision as plaintiffs have the burden to demonstrate that the calculation of damages is possible on a class wide basis.