Nordstrom Rack Class Action Says Sale Pricing Is Fake

A recent Nordstrom Rack class action lawsuit claims that the store uses false reference prices to advertise their “sales.”

Nordstrom Rack is the discount version of the popular department store. The store offers discounted items which are advertised with a “compare at” or “comparable value” price.

These prices support the belief that consumers are buying high quality Nordstrom products at a discounted price.

Nordstrom Rack’s website reportedly claims to offer “the most current trends and the brands you love for 30-70% off original prices.” However, these prices are allegedly misleading according to the Nordstrom class action lawsuit.

Plaintiff Erin King claims that the advertised comparison prices are completely false and that they do not reflect any actual prices used to sell the product by a competitor.

“The comparison prices are not actual or representative prices at which the same products have been sold or offered for sale in the local area during the 90 days immediately preceding the date on which Nordstrom advertises the price comparison,” the Nordstrom Rack class action claims.

Instead, the comparison prices are allegedly artificial, inflated prices set by Nordstrom Rack in order to influence pricing decisions. When consumers see high comparison prices, they believe that they are getting a good deal and may be willing to pay more for a product than they would have if there was no comparison price.

“Academic literature shows that false price comparisons and discounts influence consumer behavior; that higher comparison prices influence consumer perception of value and purchasing decisions,” according to the Nordstrom Rack class action.

The complaint also references literature showing that “if a higher comparison price is fictitious or inflated, it is likely to deceive consumers by creating illusions of savings that the consumer thinks they need to take advantage of by purchasing the product now rather than risk losing the purported savings or continuing to look for a better deal elsewhere.”

Unfortunately, consumers may not be getting the bargain and benefits they assume they are getting. The Federal Trade Commission (FTC) has reportedly warned against false price comparison schemes, saying that “the purchaser is not receiving the unusual value he expects” with these pricing systems.

King claims that Nordstrom’s pricing scheme violates Missouri consumer protection laws which protect consumers against “false, misleading, and deceptive price comparisons.” King also alleges that the violation was intentional, and that Nordstrom Rack knew the effects of using fake prices.

In the Nordstrom Rack class action, King seeks to represent a Class of Missouri consumers who purchased one or more items advertised with comparison prices from Nordstrom Rack within the last five years.

The Nordstrom Rack class action lawsuit seeks actual damages, equitable relief, disgorgement, court costs, and attorneys’ fees.

King and the proposed Class are represented by Robert D. Blitz and Christopher O. Bauman of Blitz Bardgett & Deutsch LC; Matthew Zevin and Scott A. Kitner of Stanley Law Group; and Daniel B. Sivils.

The Nordstrom Rack Class Action Lawsuit is King v. Nordstrom Inc., Case No. 4:19-cv-02032-SNLJ, in the U.S. District Court for the Eastern District of Missouri.

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