Burlington Coat Factory Hit with Deceptive Pricing Class Action

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Last week, a class action lawsuit was filed against Burlington Coat Factory of California LLC accusing the discount retailer of using allegedly false “compare” price tags to make it seem like consumers are getting a great deal.

Lead plaintiffs, Jennifer Price and James Horosny, allege in their class action lawsuit that the discount clothing retail chain lists “compare” prices on item tags that lead consumers to believe they are getting the item at a large discount. However, the plaintiffs continue, Burlington Coat Factory does not actually know what the items are sold for in other stores and make up the “compare” prices.

In the Burlington Coat Factory class action lawsuit, both plaintiffs allege that they were victims of the “compare” price tags. They claim they each purchased clothing and other items from Burlington Coat Factory that they wouldn’t have bought except for the deceptive price comparisons and included images of purses sold by Burlington for $59.99 and $19.99 with comparative prices of $188 and $69. The plaintiffs further allege that those comparisons are listed in Burlington Coat Factory’s online and print advertising throughout the chain’s stores in California. According to the class action lawsuit, the “compare” price tags do not explain how the retailer comes up with the price comparison, as opposed to tags that state “suggested retail price.”

According to the Burlington Coat Factory class action lawsuit, “Defendant’s decision to advertise a price which did not actually exist was likely to deceive consumers” and “Defendant’s representation of the ‘compare’ price as an actual price being charged for that product was unlawful, unfair, and/or fraudulent.”

The class action lawsuit alleges that Burlington Coat Factory is in violation of California law and U.S. Federal Trade Commission (FTC) regulations by using “compare” price tags with allegedly no basis. The plaintiffs contend that both California law and the FTC regulations require advertised higher prices to be “based on fact.”

The plaintiffs further allege in their class action lawsuit that Burlington Coat Factory misleads consumers when it advertises a “recent documented selling price” because it selects the most expensive comparison it can find and that using these prices are part of a “company-wide, pervasive and continuous campaign” to deceive consumers into believing that the chain “always” sells items at a 60 percent discount.

The plaintiffs seek to represent a Class of California purchasers they allege are deceived by Burlington Coat Factory’s comparative pricing scheme. The plaintiffs are also seeking restitution and disgorgement of any profits Burlington allegedly earned through the false advertising, as well as an injunction on Burlington’s pricing scheme.

The plaintiffs are represented by Christopher J. Morosoff of Law Offices of Christopher J. Morosoff.

The Burlington Coat Factory Deceptive Pricing Class Action Lawsuit is Horosny, et al v. Burlington Coat Factory of California LLC, et al., Case No. 2:15-cv-05005, in the U.S. District Court for the Central District of California.

UPDATE: The Burlington Coat Factory Deceptive Pricing Class Action Settlement is now open! Click here to file a claim.