TJ Maxx Prints Deceptive Sale Prices on Tags, Class Action Says

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The owner of T.J. Maxx retail stores, TJX Cos. Inc., was hit with a deceptive advertising class action lawsuit, alleging that the retailer tricks shoppers into thinking that they are saving a specific amount on items that are sold at TJ Maxx stores.

The TJ Maxx class action lawsuit was filed by plaintiffs Staci Chester and Daniel Friedman on July 17 in a California federal court. They say that they are both “typical consumers” who “are motivated by the promise of a good deal.”

For this reason, Chester and Friedman both shop at TJ Maxx stores in California because the retail chain, promises its customers “that they can get name brand products for up to 60 percent off department store prices.”

To that end, TJ Maxx supports “that promise with price tags on each item that feature Defendants’ selling price alongside a much higher supposedly comparative price.”

That comparative price is supposed to convey to shoppers “that they are receiving an exceptionally good deal and saving a specific dollar amount equal to the difference between the two prices.”

The TJ Maxx class action lawsuit alleges that these comparative prices are false.

“They are not true, bona fide comparative prices,” Chester and Friedman claim in their class action lawsuit.

The two plaintiffs claim that they have both purchased items at T.J. Maxx stores.

“Each item offered for sale at TJ Maxx is displayed with a comparative price tag thich provides two prices: the TJ Maxx sale price and another significantly higher price described simply as the ‘Compare At’ price,” the TJ Maxx class action lawsuit says.

TJ Maxx, like other retailers, state these reference prices, which are also known as “advertised reference prices,” or ARPs, which are often accompanied by a brief phrase such as “former price,” “regular price,” “list price,” “MSRP,” or “compare at.”

“These marketing phrases are commonly referred to as ‘semantic cues,'” the TJ Maxx class action lawsuit explains. “The semantic cues used by retailers can be either informative or deceptive, depending on the specificity of the language and the truthfulness or accuracy of the ARP.”

Chester and Friedman argue that TJ Maxx’s use of the phrase “Compare At” is more deceptive than informative.

They claim in the class action lawsuit that when they saw the phrase “Compare At” that they thought it meant that that is the price “they would expect to pay for those same items at other retailers in their general area.”

However, the class action lawsuit says that TJ Maxx has a different definition of the phrase.

On the TJ Maxx website, which Chester and Friedman say you can only find by going to the very bottom of the website and clicking on the “compare at pricing” link, TJ Maxx states the following: “The ‘compare at’ price is our buying staff’s estimate of the regular, retail price at which a comparable item in finer catalogs, specialty or department stores may have been sold. We buy products from thousands of vendors worldwide, so the item may not be offered by other retailers at the ‘compare at’ price at any particular time or location. We encourage you to do your own comparison shopping as another way to see what great value we offer.”

Chester and Friedman claim that this is not explained anywhere on the actual price tags or in the price advertising that “Compare At” price is merely an estimate of the buying staff.

The class action lawsuit is charging TJ Maxx with unfair business practices, fraudulent business practices, unlawful business practices, false advertising, and with violating California’s Consumer Legal Remedies Act.

The plaintiffs are represented by Christopher J. Morosoff of the Law Office of Christopher J. Morosoff.

Counsel information for the defendants was not yet available.

The TJ Maxx Deceptive Pricing Class Action Lawsuit is Chester et al. v. The TJX Cos. Inc., Case No. 5:15-cv-01437, in the U.S. District Court for the Central District of California.

UPDATE: On Aug. 18, 2016, a California federal judge ruled that the plaintiffs sufficiently presented claims under California’s Unfair Competition and False Advertising laws by adequately alleging that the “compare at” price can likely deceive a reasonable consumer, therefore TJ Maxx must face the class action lawsuit. 

UPDATE 2: On Sept. 19, 2017, a proposed $8.5 million class action settlement over allegations TJ Maxx, HomeGoods and Marshalls stores use misleading price tags should be preliminarily approved, four plaintiffs urged a California federal judge.

UPDATE 3: January 2018, the California T.J. Maxx, Marshalls, HomeGoods deceptive pricing class action settlement is now open. Click here to file a claim.

UPDATE 4: On Dec. 3, 2018, Top Class Actions readers started receiving gift cards worth as much as $27.53 from the TJ Maxx, Marshalls, & HomeGoods deceptive pricing settlement.