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Van Heusen sale offers may hinge on deceptive reference prices, a practice which has launched legal action against the retailer in the past.
What Are Fake Discounts?
When consumers purchase a product, especially from an outlet store, they rely on the price tag of an item to dictate their purchasing decisions. In some cases, these tags and other advertisements may show an “original” or “reference” price which indicates a former list price of the products.
If consumers see these prices and believe they are getting a good deal on an expensive item, they may be more willing to purchase the product or may even pay more than they otherwise would have. Consumers almost universally enjoy getting a good deal on items they want, which holds true when they see reference prices.
Although these reference sales can be attractive to consumers, industry experts warn that these prices may be a deceptive ploy to drive purchasing decisions.
“You have to be really careful because many of these sales are what we call fake sales,” Kevin Brasler, executive editor of Consumers’ Checkbook, told WTOP News. “They’re discounts that are offered over and over again, almost every week throughout the year.”
Because these prices may be used in a deceptive manner, Brasler recommends that consumers shop around to determine if sale prices are fair. This can help ensure that consumers do not allow themselves to be swayed by fake prices and instead base their purchasing decisions based on real facts.
Unfortunately, consumers may still fall victim to fake discounts. According to a 2018 paper from the Harvard Business School, these misleading prices can have a significant impact on consumer purchasing decisions.
After measuring the impact of pricing changes on consumers purchasing behaviors, the analysis concludes that a $1 increase in the reference price of an item has the same positive affect on purchasing likelihood as that seen with a $0.77 decrease in item price. However, when consumers are aware of the fake list prices, these reference sales have no impact on purchasing decisions.
These results lead the Harvard researcher to conclude that “fake prices enhance demand by misleading consumers about true original prices.”
In their conclusion, the researcher also notes that the profits gained from false sale schemes may outweigh the impact that companies face from legal action.
“The persistence of fake pricing despite frequent high-profile lawsuits against the practice suggests that it is indeed profitable for sellers to pursue,” the Harvard paper concludes.
“On the other hand, the practice does seem to be disciplined by natural constraints that result in familiar patterns within industries […]. It would be of particular interest for regulators to identify these constraints in their efforts to curtail this practice and protect consumer interests.”
Are Van Heusen Sale Offers Fake?
Unfortunately, retailers like Van Heusen – a prominent clothing retailer – may be guilty of using fake discounts to attract consumers and encourage purchases. Although deceptive Van Heusen sale offers could deceive consumers, affected buyers may be able to seek legal relief.
Has Van Heusen Faced Legal Action Over Fake Discounts?
Van Heusen sale offers have been the subject of legal action in the past. Plaintiffs in a Van Heusen fake sale class action lawsuit argued that the retailer used deceptive comparison prices to induce consumer purchases.
Van Heusen did not admit any wrongdoing in this case but agreed to settle the claims against them in a class action settlement deal.
Under the terms of the settlement deal, relief was available for California consumers who shopped at a Van Heusen store in the state between June 1, 2018 and Oct. 3, 2018 while reference prices were displayed on products. These consumers were eligible for up merchandise certificates – each worth $6.50. Lower awards were available to consumers who didn’t need to provide proof of purchase while consumers who spent $150 or more in Van Heusen purchases could collect multiple certificates.
Should You File a Van Heusen Sale Lawsuit for a Fake Discount?
Federal and state laws prohibit deceptive pricing schemes – including fake discounts.
If you were misled by a deceptive Van Heusen sale at an outlet store, you may be eligible to take legal action. A fake sale class action lawsuit could seek compensation for the financial damages of overpaying for a product or making purchased based on false information.
The Van Heusen Fake Sale Class Action Lawsuit is Ramos v. PVH Corporation, et al., Case No. 34-2018-00234829, in the Superior Court of California, County of Sacramento.
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