(MCT) – In a first-of-its-kind lawsuit that could affect thousands of college students who think they are overcharged for textbooks, two Daytona Beach Community College students have sued the nation’s largest collegiate-bookstore chain and their school.

The class-action suit, filed in Orlando’s federal court, alleged unfair and illegal pricing practices and seeked to recover at least $5 million in damages. It accused the Follett Higher Education Group and DBCC of overcharging students pennies on each used-book sale and underpaying them when buying books back.

Though that may amount to only a few bucks each semester, the students argued that, when multiplied by thousands of students at each of the company’s more than 750 bookstores, it added up to millions.

Co-plaintiffs Thomas Rebman and Danny Brandner also said the college is “complicit” in the textbook company’s actions because through DBCC’s contract with Follett, it has received up to 10.5 percent of all bookstore revenues annually. In a recent 12-month period, the college reported collecting at least $400,000 in commissions from Follett’s operations on the school’s five campuses.

“This isn’t about me or Mr. Brandner,” Rebman said. “It’s that still to this day, students are overcharged … and they (DBCC administrators) refuse to enforce the contract.”

The suit – filed in late September – is unique, according to attorneys and industry experts, and may have implications for thousands of students nationwide if a judge allows it to go forward as a class action.

Textbook prices have rankled college students for years. Student-government coalitions and advocacy groups in 14 states launched a campaign in 2003 that included a push to persuade colleges to negotiate better prices with book publishers.

A Government Accountability Office report in 2005 found college-book prices have increased at twice the rate of inflation in the past two decades. A congressional advisory committee is undertaking a yearlong study to find ways to rein in prices.

National Association of College Stores figures showed used books accounted for $1.9 billion in sales during the 2004-05 academic year. New books accounted for $4.4 billion during that same time period.

“Mr. Rebman and our law firm are seeking to recover for every student who was overcharged … or was underpaid when they sold back their books,” said Marc Wites, a South Florida attorney who specializes in class-action suits.

‘We are in compliance’

Pam Goodman, a Follett Corp. spokeswoman, would not address the lawsuit’s allegations.

“Follett believes this suit is without legal basis,” said Goodman, reading a company statement.

Goodman said she couldn’t discuss specific store operations, but the company has “different pricing” at hundreds of stores nationwide. The Oak Brook, Ill., company does more than $2 billion in annual sales through its five education-related divisions.

“Follet’s pricing is governed by the agreements we have with the individual institutions we serve,” Goodman said. “And we take great care to ensure we are in compliance with the terms.”

DBCC officials would not comment, referring all questions to Goodman.

The five-count complaint alleges breach of the contract between Follett and the college, violations of the Florida Deceptive and Unfair Trade Practices Act and a civil conspiracy.

Before the fall semester began in August, Rebman and Brandner said, their college bookstore illegally rounded up the prices of used books to the next 25-cent increment. Used books that should have cost $88.69 and $85.31 were sold to them for $88.75 and $85.50, respectively, they argued.

And when they sold books back to the store, they said the store paid them less than 50 percent of the new retail price as required by the contract. Examples cited in the suit include the return of a college-algebra book that cost $118.25 new but was bought back by the store for $56.25, or less than half its new price. In that transaction, the student should have received $59.12, the suit said.

An online check of Follett’s DBCC bookstores in late November showed that used books required for next semester’s classes were still being marked up to the nearest quarter. Prices for used-book buybacks were not available.

In 2006, DBCC and Follett – in response to student complaints – each conducted audits of the campus bookstore. College officials refused to discuss the results with the Sentinel. A joint statement released by Goodman, Follett and DBCC said “audits confirmed that Follett is abiding by the terms of its agreement.”

A legal expert said the lawsuit may impact Follett’s operations at its more than 750 college bookstores in the U.S. and Canada. In Florida, Follett has a presence on at least 60 campuses.

‘A pretty good hurdle’

Stanley Talcott, a professor and former dean of Barry University’s law school, said the challenge facing the students and their attorneys is to prove they can represent peers beyond their campus.

“They’ve got a pretty good hurdle getting this certified as a class-action suit,” he said. “If they can expand it beyond the Daytona Beach Community College students, they’ll certainly get Follett’s attention.”

Rebman, 45, briefly worked at a Follett bookstore in 2004 and will transfer to the University of Central Florida next semester to continue his pursuit of becoming an elementary-school teacher.

Brandner, an Edgewater resident who Rebman said is in his 20s, could not be reached for comment.

Albert Greco, a business professor at Fordham University who follows the college-textbook industry, said bookstores are “hardly price gouging” and instead provide high-quality books at low prices.

“We live in the age of litigation, so the lawsuit doesn’t surprise me,” Greco said. He said Follett is a reputable company and found the students’ legal claims “interesting.”

Holland & Knight LLP attorneys, who are representing Follett and the college, have filed a motion to dismiss the lawsuit, saying the students are not parties to the contract and are attempting to paint “themselves as third-party beneficiaries” of the contract.

A federal judge next will decide whether the student’s claims should apply to a larger student body and can be certified as a class action.