Consumers claim Old Navy, Michael Kors, other retailers use false reference pricing

False reference pricing class action lawsuits overview: 

• Who: Consumers recently filed class action lawsuits against Michael Kors, AM Retail Group, The Shade Store, Old Navy and J.Crew Group. 
• Why: The class action lawsuits involve claims the companies used false reference pricing to mislead consumers into believing they were getting larger discounts than was actually the case. 
• Where: The class action lawsuits affect consumers nationwide.

Consumers recently filed a number of class action lawsuits against companies accused of using false reference pricing to mislead consumers into thinking they are getting larger discounts than they actually are. 

A company will use false reference pricing to induce consumers into making a purchase by misleading them about the size of the discount they receive. 

Michael Kors accused of using false prices to attract customers to discounted items

A trio of consumers filed a class action lawsuit against Michael Kors last month over claims the fashion company uses false prices as a reference point to attract customers to discounted items sold at its outlet store. 

Michael Kors is accused of presenting sale prices and signage without indicating the prices are not actually the former prices of the products, nor are they even recently or regularly offered prices for identical items.

“Aware of the intertwined connection between consumers’ buying decision processes and price, retailers like defendant lures consumers with advertised discounts that promise huge savings and high value,” the Michael Kors class action states. 

Michael Kors is accused of violating federal law, including the Federal Trade Commission Act, and New York, New Jersey and California state law. 

Wilsons Leather seller accused of falsely portraying items as sold at discount

In March, a consumer filed a class action lawsuit against AM Retail Group, arguing the company sells Wilsons Leather products deceptively priced to falsely portray they are being sold at a discount. 

In addition to allegedly listing false reference prices for Wilsons Leather products listed for sale online, the company is also accused of falsely advertising that the discount price would expire at a certain time. 

The consumer argues the advertised sales for the Wilsons Leather products “creates an illusion that customers are receiving a limited-time discount,” which, in turn, tempts them into making a purchase prior to their purported expiration date. 

“But these advertisements are false,” the Wilsons Leather class action states. “The sales are not limited in time, and the discounts continue to be available.”

The Shade Store advertised false sales prices to entice purchases, class action says

A consumer filed a class action lawsuit against The Shade Store last month, arguing the company advertised false sales prices as a way to entice purchases of window covering and accessories. 

The Shade Store is accused of listing discounted prices — in addition to a purported date when the sale would end — alongside a crossed out “regular” price for items available for purchase on the company’s website. 

The consumer claims the items The Shade Store listed for sale were never actually sold at the “regular” price and that the sales do not actually end when they are purported to.

“Consumers are more likely to purchase an item if they know that they are getting a good deal,” The Shade Store class action states.

Old Navy sent promotional emails containing deceptive subject lines, class action says

A pair of consumers filed a class action lawsuit against Old Navy last month over claims the company sent emails to Washington residents containing deceptive subject lines in regard to sales and promotions. 

Old Navy is accused of sending promotional emails that “mis-state the duration of given promotions,” in what is an “apparent effort to drive sales by creating a false sense of urgency,” amongst consumers. 

The consumers argue Old Navy also uses preconceived “sales extensions” as an excuse to send more emails that purport to notify them a sale is either ending or has been extended. 

“These emails give consumers a false sense of urgency and spur impulse buys by consumers who do not want to miss the deal,” the Old Navy class action states. 

J.Crew accused of falsely advertising ‘comparable prices’ for its main and factory clothing lines

In April, a pair of consumers filed a class action lawsuit against J.Crew Group, arguing the specialty retail company falsely advertises “comparable prices” that mislead customers about the value of sales regarding clothing products belonging to its J.Crew and J.Crew Factory clothing lines. 

J.Crew is accused of misleading consumers with the displayed “comparable prices” since the quality of its J.Crew and J.Crew Factory clothing lines are allegedly not equal. 

The consumers claim the J.Crew clothing line is higher quality than the J.Crew Factory clothing line and that the comparable pricing serves simply “to give off the appearance of a bargain.” 

“Defendant intentionally misleads consumers as to the quality and value of the merchandise available on its website and in its retail stores … through its deceptive sales tactics,” the J.Crew class action states.

Have you been deceived by false reference pricing? Let us know in the comments!

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