Class actions over ‘fake’ discounts and deceptive pricing hit numerous retailers

Deceptive pricing class action lawsuits overview: 

• Who: Class action lawsuits about deceptive pricing and involving Premium Brands, including Opco LLC, Ralph Lauren Corp. and Walmart were recently filed or in the news. 
• Why: The class action lawsuits revolve around claims the retailers used deceptive pricing tactics. Premium Brands and Ralph Lauren are accused of using false discounts to make their deals look better. Walmart is accused of using false and misleading shelf pricing. 
• Where: The class action lawsuits were filed in U.S. federal courts. 

Consumers recently filed class action lawsuits involving false reference pricing against Premium Brands Opco LLC and Ralph Lauren Corp. 

The class action lawsuits argue that Premium Brands—which owns Ann Taylor Factory Stores and LOFT Outlet stores—and Ralph Lauren allegedly used reference prices for discounted items that were inflated to make their discounts appear bigger than they actually were. 

The 7th Circuit restored a class action lawsuit involving Walmart this month. The complaint argues that Walmart used false and misleading shelf pricing, causing its customers to pay 5-10% more than they expected. 

Items sold at Ann Taylor, LOFT Outlet stores with false discount, class action claims

A consumer filed a class action lawsuit against Premium Brands Opco LLC earlier this month, claiming the company advertised false discount prices for products sold at its Ann Taylor Factory Stores and LOFT Outlet locations in Oregon. 

The class action lawsuit argues products sold at Ann Taylor Factory Stores and LOFT Outlet stores were discounted from a “higher, made-up, and artificially inflated ‘original’ price” that “no one ever pays.” 

“This practice artificially inflates the true market price for these products by raising consumers’ internal reference price and in turn the perceived value consumers ascribe to these products,” the class action says. 

The consumer wants to represent an Oregon class of consumers who purchased a product at an Ann Taylor Loft Factory store or LOFT Outlet store discounted from an advertised reference price and who did not receive a refund or credit for the purchase. 

Premium Brands Opco is accused of violating Oregon’s Unlawful Trade Practices Act. 

Ralph Lauren used inflated reference prices for discounted items, class action says

A consumer filed a class action lawsuit against Ralph Lauren Corp. last month over claims the company used reference prices for discounted items at its Polo Factory outlet stores that were artificially inflated. 

The class action lawsuit argues that Ralph Lauren used inflated reference prices to make the discounts appear bigger than they actually were. 

“Aware of the intertwined connection between consumers’ buying decision processes and price, retailers like the Defendants lure consumers with advertised discounts that promise huge savings and high value,” the Ralph Lauren class action says. 

The consumer wants to represent a California class of consumers who have purchased one or more items at a Ralph Lauren Polo Factory outlet store that were sold at a discount from an advertised reference price and who have not received a refund or credit for their purchase(s). 

Ralph Lauren is accused of violating California’s Unfair Competition Law and Consumers Legal Remedies Act. 

7th Circuit rules Walmart must face claims of false, misleading shelf pricing

A 7th Circuit reversed a district court ruling earlier this month to dismiss claims Walmart used false and misleading shelf pricing. 

The appeals court ruled that Walmart’s providing customers with a receipt showing the actual price of the purchased items was enough to dispel any deception or unfairness that an inaccurate shelf price would cause, as the district court had found. 

Claims for injunctive relief brought under the Illinois Uniform Deceptive Trade Practices Act remained dismissed. The appeals court agreed that the complaint did not allege a plausible likelihood of future injury that would be needed for injunctive relief under the law. 

The consumer, in a class action lawsuit filed back in 2022, argued Walmart customers ended up paying around 5-10% more than they expected due to allegedly false and misleading shelf price advertising. 

Have you purchased an item at what you now believe was a fake discount? Let us know in the comments.

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