Recent class actions allege companies advertise false reference prices

False reference prices class action lawsuits overview: 

• Who: Consumers recently filed class action lawsuits against Lowe’s Home Centers, L.L. Bean, Under Armour and Sleep Number Corp. 
• Why: The lawsuits claim the companies advertise false discounts to trick consumers into believing they are getting a better deal than is actually the case. 
• Where: The class action lawsuits were filed in U.S. federal courts. 

Consumers recently filed class action lawsuits alleging so-called false reference pricing, which is meant to deceive customers into believing they are getting a good deal. 

The class action lawsuits accuse Lowe’s Home Centers, L.L. Bean, Under Armour and Sleep Number Corp. of the practice.

Lowe’s advertised certain products at perpetual discount, class action claims

A consumer filed a class action lawsuit against Lowe’s Home Centers this month over claims the home improvement retailer misleads customers by advertising products at a perpetual discount. 

The class action lawsuit argues Lowe’s advertised certain products at a discount when, in reality, they are “rarely if ever” actually offered at any price other than their perpetually discounted rate. 

Lowe’s engages in the alleged pricing scheme to trick its customers into believing the products are worth more than they actually are, the Lowe’s class action alleges. 

“Lowe’s’ deceptive pricing scheme is intended to trick consumers into believing that its products are worth, and have a market value equal to, the inflated list price, and that the lower advertised sale price represents a special bargain,” the Lowe’s class action says. 

L.L Bean uses sale prices that are standard product rate, class action says

A consumer filed a similar class action lawsuit against L.L. Bean this month over claims the clothing retailer misleads its customers by offering false discounts. 

The class action lawsuit argues L.L. Bean tricks consumers into believing they were getting a substantial discount by posting inflated “reference prices” alongside sale prices for items on its website. 

The sale prices L.L. Bean uses are actually the standard rate for the product, the L.L. Bean class action alleges. 

“This practice tricks consumers into overpaying by inflating their perception of product value,” the lawsuit says. 

Under Armour uses artificially inflated original prices for sale items, class action claims 

A consumer filed a class action lawsuit against Under Armour in late October over claims the sportswear company prices sale items at its factory outlet stores in a misleading way by using artificially inflated original prices. 

The class action lawsuit argues Under Armour misleads consumers by advertising discounts that misleadingly promise to provide “huge savings and high value.”

The promised savings are false and based on a higher, made-up and artificially inflated original price, according to the Under Armour class action. 

“Consumers are misled and incorrectly overvalue defendant’s factory products as a result of the false price comparisons,” the Under Armour class action says.

Class action says Sleep Number deceives consumers with false reference prices

A consumer filed a class action lawsuit against Sleep Number Corp. in October over claims the company used false reference pricing for mattresses advertised as on sale at its brick-and-mortar stores and on its website. 

The class action lawsuit argues Sleep Number’s alleged pricing scheme deceives consumers into believing they are getting a better bargain than is actually the case. 

“Defendant’s advertised false reference prices and advertised false discounts were material misrepresentations and made for the purpose of inducing consumers like Plaintiff to make their purchase,” the Sleep Number class action says. 

Have you recently purchased an item that was advertised as being at a discount from an artificially inflated original price? Let us know in the comments.

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