Melissa LaFreniere  |  July 2, 2015

Category: Consumer News

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Kenneth Cole class action lawsuitThe fashion clothing company Kenneth Cole Productions Inc. was hit with a $5 million false advertising lawsuit on Tuesday over allegations that the retailer fabricated “former prices” on products sold at their outlet stores. Lead plaintiff Peggy Cabrera of California filed the proposed class action lawsuit after purchasing items at a Kenneth Cole Outlet Store for what she believed to be a discounted price.

Cabrera alleges that the outlet’s price tags offer a misleading “manufacturer’s suggested retail price” which is significantly higher than the “our price” listed. Cabrera claims that the price-reduction representation on Kenneth Cole Outlet price tags enticed her to buy items she believed to be a bargain.

The false advertising class action lawsuit alleges that Kenneth Cole represents a fake “former price” on outlet merchandise that was never designed to be sold at a Kenneth Cole retail store. Cabrera states that the “MSRP” vs. “Our Price” sales tag is all a sham. “In fact, Kenneth Cole manufactures certain goods for exclusive sale at its Kenneth Cole Outlets, which means that such items were never sold—or even intended to be sold—at the ‘MSRP’ listed on its labels,” the Kenneth Cole class action lawsuit says.

Cabrera believes that thousands of California consumers were misled into purchasing merchandise from a Kenneth Cole Outlet because of the company’s unlawful pricing scheme. The Kenneth Cole class action lawsuit claims that the fashion retailer is in violation of the Consumers Legal Remedies Act by falsely inflating the MSRP on price tags. CLRA violations include “advertising goods or services with intent not to sell them as advertised” and “making false or misleading statements of fact concerning reasons for, existence of, or amounts of price reductions.”

The Kenneth Cole class action lawsuit claims the company fraudulently concealed or intentionally failed to disclose to potential Class Members the supposed former prices on outlet store merchandise. Cabrera claims that neither she nor any other reasonable consumer would purchase items if they knew that the MRSPs on Kenneth Cole Outlet merchandise were “fictional creations designed to enable phantom markdowns.”

Cabrera filed this false sale class action lawsuit because she believes that even if every one of the thousands of Kenneth Cole customers had the means to afford a lawsuit on their own, the individual damages incurred by each potential Class Member are too small to warrant the expense of an individual case.

If approved, the Kenneth Cole class action lawsuit would be open to all individuals in the State of California who, within the applicable statute of limitations preceding the filing of this action, purchased an item from a Kenneth Cole Outlet Store.

Cabrera is represented by Wayne S. Kreger of The Law Offices of Wayne Kreger and Jason H. Alperstein of Kopelowitz Ostrow P.A.

The Kenneth Cole False Advertising Class Action Lawsuit is Cabrera v. Kenneth Cole Productions Inc., Case No. 1:15-cv-05107, in the U.S. District Court for the Southern District of New York.

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One thought on Kenneth Cole Outlet Class Action Claims False Ad Scheme

  1. Karen Cortinas says:

    I have been at the outlets, and have always figured that was the case, not sure former prices

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