Adidas Sued for Deceptive Advertising in New Class Action Lawsuit

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Adidas False Discount Class Action Lawsuit Overview: 

• Who: Christopher Brown filed a class action lawsuit against Adidas America, Inc. 
• Why: Plaintiff alleges Adidas-branded merchandise sold in the defendant’s outlet stores in California were deceptively advertised with fictitious reference prices and corresponding phantom discounts.
• Where: The class action lawsuit was filed in California federal court. 

Adidas America, Inc. engaged in the “deceptive” business practice of advertising fictitious reference prices and corresponding phantom discounts on Adidas-branded outlet merchandise sold in the defendant’s outlet stores in California, a new class action lawsuit alleges.

Plaintiff Christopher Brown claims, through its false and misleading marketing, advertising and pricing scheme, Adidas violated, and continues to violate, California and federal laws that prohibit the advertisement of goods for sale discounted from former prices that are false. California and federal laws also prohibit the dissemination of misleading statements about the existence and amount of price reductions.

“Retailers, including the defendant, substantially benefit from employing false reference pricing schemes and experience increased sales because consumers use advertised reference prices to make purchase decisions,” the class action lawsuit states. 

The information available to consumers varies for different types of products, but consumers frequently lack full information about a product and, as a result, can incorporate information from sellers to make purchase decisions. 

Brown seeks to bring the action on behalf of himself and other similarly situated consumers who have purchased one or more Adidas-branded outlet products from an Adidas outlet store in California that was deceptively represented as discounted from a false reference price. 

Class Action Claims Adidas Engaged in False Discounting Practices 

The plaintiff’s allegations stem from his 2019 purchase of sweatpants from the defendant’s San Diego outlet store. The item advertised a “regular price,” as well as a discounted “our price,” and was also advertised as an “additional 50% off.” During his time at the store, the plaintiff noticed numerous signs within the store advertising a “__% off” over items throughout the store. He noticed that most, if not all, items in the store were accompanied by an in-store sign purporting to represent a “__% off.” 

After observing the “regular price” and “our price” of the item and the accompanying sale price, Brown believed he was receiving a significant discount on the item, and also felt that the discounted price would likely not last, so he purchased the item. However, the merchandise the plaintiff purchased was never offered for sale at the reference price listed on the price tag. The plaintiff was damaged in his purchase because the defendant’s false reference price discounting scheme inflated the true market value of the item he purchased, the class action lawsuit states. 

An investigation of Adidas outlet stores conducted by Brown’s counsel confirmed that the merchandise purchased by the plaintiff was priced with a false reference price and a corresponding discounted price for at least the 90-day period immediately preceding the plaintiff’s purchase in violation of California law and the Federal Trade Commission Act (“FTCA”). 

The plaintiff’s counsel’s investigators also cataloged the pricing practices of Adidas outlet stores across California and discovered that items listed for sale in the defendants’ outlets were never offered for sale at either their full “regular price” or “our price” reference prices. Additionally, the plaintiff’s investigation attempted to locate the items sold at the Adidas outlet store in other distribution channels in the relevant market and verified that the merchandise sold at the outlet stores was not the same as Adidas merchandise offered for sale at commonly known retailers. 

“Thus, the ‘regular price’ and the discounted ‘our price’ on the Adidas merchandise sold at the Adidas outlet stores, including the ‘regular price’ and the discounted ‘our price’ listed on the sweatpants plaintiff purchased, are either false original prices or severely outdated prices that have not been offered in the relevant market or at an Adidas store for at least more than a year,” according to the class action lawsuit. 

Brown is requesting compensatory damages and declaratory and injunctive relief, including disgorgement and restitution, for himself and all class members. He would also like the defendants to engage in a corrective marketing campaign.

Have you purchased Adidas outlet merchandise without knowing it was falsely discounted? Let us know in the comments! 

The plaintiff is represented by Todd D. Carpenter and Scott G. Braden of Carlson Lynch LLP. 

The Adidas False Discount Class Action Lawsuit is Brown, et al. v. Adidas America, Inc., et al., Case No. 3:21-cv-01686-L-LL, in the U.S. District Court for the Southern District of California.

Read About More Class Action Lawsuits & Class Action Settlements:

• Calvin Klein ‘Deceived’ Customers With Fictitious Discounts on Outlet Merchandise, Class Action Says
• Class Action Lawsuit Alleging Point Blank Manufactured Defective Bulletproof Vests Should Be Revived, Say Police Associations
• Banana Republic, Ralph Lauren Falsely Advertise the Quality of Cotton in T Shirts, Class Action Alleges
• Class Action Alleging Sketchers Light-Up Shoes Cause Burns Tossed