NY and Co. class action alleges company advertises fake sale prices

NY and Co. class action lawsuit overview:

• Who: Plaintiffs Kanisha Mitchell and Kim Moseley filed a class action lawsuit against NY and Co. Ecomm LLC, NY and Co. IP LLC and Saadia Group LLC.
• Why: The defendants allegedly advertise fake discounts for items that are never actually offered at the reference price.
• Where: The NY and Co. class action lawsuit was filed in California federal court.

NY and Co. falsely advertises the original sale price of merchandise to deceive consumers into thinking they will receive a great bargain when products are offered at a discount, a new class action lawsuit claims.

“Defendants advertise fake and inflated comparison reference prices to deceive customers into a false belief that the sale price is a deeply discounted bargain price,” plaintiffs Kanisha Mitchell and Kim Moseley allege in the NY and Co. class action lawsuit. The lawsuit was filed Dec. 1 in California federal court.

Mitchell and Moseley claim the women’s fashion retailer NY and Co. sells items at purported discount prices, but they allege many of the items were never offered at the so-called regular price. Because NY and Co. branded products are only sold by the defendants, they cannot claim that other retailers have sold the items at the purported regular price, the plaintiffs say.

They note that NY and Co.-branded products are only sold through the company’s website, which means the reference price cannot represent the prevailing market price of any other outlet other than the website.

NY and Co. sale pricing scheme dupes consumers into paying inflated prices, plaintiffs say

The NY and Co. sale pricing scheme actually dupes consumers into paying more for items than they are worth, the plaintiffs claim. For example, they point to a hypothetical item that the company knows will sell for $30 in the marketplace. By listing a “regular” price of $100 and offering a purported 60% off discount, the NY and Co. class action says the retailer can entice consumers to pay $40 for a product that is only worth $30.

“As a result, consumers are deceived into spending money they otherwise would not have spent, purchasing items they would not have purchased, and/or spending more money for an item than they otherwise would have absent deceptive marketing,” the class action alleges.

Mitchell and Moseley allege they would not have purchased products from NY and Co., or would not have paid as much for them, if not for the deceptive sale pricing scheme.

They filed the class action lawsuit on behalf of themselves and a proposed class of California residents who purchased NY and Co.-branded products from the company’s website at a discount from a higher reference price.

Earlier this year, NY and Co. was hit with a class action lawsuit alleging it continues to send promotional text messages even after customers opt out of the communications.

Have you purchased items at purported NY and Co. sale prices? Tell us what you think of the class action allegations in the comments.

Mitchell and Moseley are represented by Alexander E. Wolf of Milberg Coleman Bryson Phillips Grossman PLLC.

The NY and Co. sale class action lawsuit is Kanisha Mitchell, et al. v. NY and Co Ecomm LLC, et al., Case No. 2:23-cv-10117, in the U.S. District Court for the Central District of California.

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