Ralph Lauren Class Action Says Factory Store Pricing is Fake

A recent Ralph Lauren class action lawsuit claims that the brand’s factory stores use deceptive reference prices to drive sales.

Factory and outlet stores are characterized by discounted products and are typically understood to contain items that have been transitioned out of the regular designer stores.

Polo Ralph Lauren factory stores reportedly tag their items with a sale price and a “reference” price.

The Ralph Lauren class action lawsuit states that the reference price on these tags is purported to be either a comparison price for the item or the item’s former price. The sale prices are typically 25 to 50 percent lower than the advertised reference prices, according to the Ralph Lauren class action.

Although this practice is uniformly applied throughout Ralph Lauren factory stores, plaintiff Brenda Tripicchio claims that the reference prices do not reflect any real price that the items were sold at. Instead, she says the reference prices are “wholly fictitious and inflated prices.”

Tripicchio argues that Ralph Lauren utilizes false reference prices in order to “induce the false and misleading information in the minds of consumers that the consumer goods bearing such tags are being offered for sale at a discount price that is lower than their usual selling price in the market place, and that the goods are of such quality that they are actually worth that higher price.”

The scheme only serves to drive sales in Ralph Lauren factory stores and caused financial harm to consumers who are induced to make purchases that they might not have if they didn’t think they were getting a good deal, the plaintiff argues.

Tripicchio says she purchased a long sleeve button up shirt from Ralph Lauren with a price tag that stated “VALUE WAS $98.50.” There was reportedly a sale price under the reference price, stating “OUR PRICE $79.99.”

The Ralph Lauren class action claims this price tag tricked Tripicchio into believing that she was getting a good deal on the shirt and drove her to purchase the product.

The false reference prices utilized by Ralph Lauren factory stores are allegedly unlawful and deceptive, prompting Tripicchio’s legal action against the brand.

The Ralph Lauren class action lawsuit includes claims under several New Jersey laws including breach of contract common law, the Consumer Fraud Act, the Truth in Consumer Contract Warranty and Notice Act, and the Declaratory Judgement Act.

Tripicchio seeks to represent a Class of New Jersey consumers who purchased a discounted item from a Polo Ralph Lauren Factory Store in New Jersey since April 12, 2013, for which a higher reference price was displayed.

She also seeks to represent a subclass of New Jersey consumers who purchased an item from a New Jersey Polo Ralph Lauren Factory Store since April 12, 2013, which had a price tag including a “VALUE WAS” statement.

The Ralph Lauren reference price class action seeks disgorgement, restitution, economic compensatory damages, injunctive relief, declaratory relief, court costs, and attorneys’ fees.

Tripicchio is represented by Ross H. Schmierer of DeNittis Osefchen Prince PC.

The Ralph Lauren Pricing Class Action Lawsuit is Tripicchio v. Ralph Lauren Corporation, Case No. 1:19-cv-03292-PKC, in the U.S. District Court for the Southern District of New York.

UPDATE: The Ralph Lauren Fake Sale Class Action Lawsuit was dismissed on September 18, 2019.

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