Kate Spade Class Action Says Outlet Reference Prices are Sham

A class action lawsuit claims that reference prices advertised at Kate Spade outlet stores are a sham and do not accurately represent the real, not-discounted price of an item.

Plaintiff Marilu Calderon says she made multiple purchases at Kate Spade outlet stores in California.

Calderon claims that she in part purchased these items because she believed she was getting a good deal.

However, the plaintiff argues that Kate Spade uses reference prices to show customers what a good deal they are getting, but these reference prices are false.

According to the Kate Spade class action, Kate Spade outlet stores display large signs that advertise that items are a certain percentage off.

The Kate Spade class action argues that in reality, the items were never listed at the higher price. Allegedly, Kate Spade & Company uses these signs to lead consumers to believe that the items in the store have a higher value than they really do.

This tricks consumers into purchasing items that they might not have otherwise purchased or would not have paid as much for, according to the Kate Spade outlet class action lawsuit.

Calderon argues that “representations regarding discounts are material; they are a fundamental representation of a product’s value and, therefore, effectively motivate purchasers.”

The Kate Spade fake discount class action lawsuit claims that Calderon relied upon the reference prices to make her purchasing decisions.

Allegedly, Calderon would not have made her purchases, or would not have paid the amount she did if Kate Spade & Company had not misrepresented the price and value of the items for sale.

The Kate Spade fake reference prices class action lawsuit argues that “hundreds of thousands of consumers” were misled like Calderon was, and that many more will continue to be misled if the fake reference prices scheme is allowed to continue.

Calderon argues that Kate Spade & Company’s use of fake reference prices is defective, misleading, and unlawful.

Allegedly, it violates California’s Consumer Legal Remedies Act, Unfair Competition Act, and False Advertising Law.

Kate Spade & Company conduct also reportedly violates the Federal Trade Commission Act which prohibits “unfair or deceptive acts or practices in or affecting commerce.”

Allegedly, Kate Spade & Company knows that consumers have to rely on representations of discounts to determine if they are getting a good deal, Kate Spade “crafts its reference price as large as possible to exaggerate the savings” that consumers will get if they purchase the advertised items.

Calderon is represented by Tina Wolfson and Bradley K. King of Ahdoot & Wolfson PC.

The Kate Spade Outlet Stores Fake Discount Class Action Lawsuit is Marilu Calderon v. Kate Spade & Company LLC, et al., Case No. 3:19-cv-00674-JLS-WVG, in the U.S. District Court for the Southern District of California.

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