Boohoo Inks $26M Settlement Ending Class Action Alleging Online Clothing Retailer Used Misleading Promotions

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Boohoo Misleading Promotions Class Action Settlement Overview: 

• Who: Boohoo has agreed to a preliminary class action settlement with US consumers. 
• Why: Consumers argue Boohoo inflated the original price of its products to mislead consumers into thinking they were getting a greater discount.
• Where: The class action lawsuits were filed in California federal court.

Boohoo has agreed to a $26.1 million class action settlement with US consumers who claim the British company ran misleading promotions in California.

The online fashion retailer was facing potential damages greater than $100 million if the class action lawsuit had succeeded in a California district court, reports The Financial Times. 

Boohoo, which sells clothing, shoes, accessories, and beauty products, says the agreement is only preliminary and that the proper legal terms still must be worked out, reports Reuters. 

Boohoo Used False Pricing to Dupe Consumers, Claimed Class Action

Lead plaintiffs in a trio of lawsuits filed in July of last year accused Boohoo of inflating its original prices in order to make its discounts seem greater than they actually were, reports FashionUnited. 

Boohoo was also in the news earlier this year after it denied claims it was underpaying textile workers at a factory in the English city of Leicester. 

The company was accused of paying workers only £3.50 an hour, despite the minimum wage being set at £8.72.

Boohoo has also been accused of failing to abide by hygiene and safety standards put in place as a response to the COVID-19 pandemic, reports The Sunday Times. 

A similar class action lawsuit was filed last year against Pretty Little Things, another online clothing retailer owned by the Boohoo Group, over allegations the company inflated its original prices to give the illusion of a greater discount. 

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