Pier 1 Class Action Alleges Store ‘Tricks’ Consumers With Fabricated Discounts

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Pier 1 False Reference Pricing Scheme Class Action Lawsuit Overview:

• Who: A Pier 1 Imports customer is suing the retailer for its allegedly deceptive business practices.
• Why: The customer says Pier 1 fabricates discounts on items, tricking consumers into paying more for items.
• Where: The lawsuit was filed in a California federal court.

Pier 1 Imports tricks consumers into purchasing products by listing “fabricated” discounted and original prices when there has only ever been one price, a new class action lawsuit alleges. 

Plaintiff Maria Panaligan filed the class action lawsuit against Pier 1 Imports Apr. 15, alleging violations of California consumer and competition laws.

Panaligan says Pier 1 consistently advertises products on its e-commerce website alongside an “original” price and a corresponding sale price. The reference price is crossed out, and a substantial discount is offered on the sale price, she says. 

However, while Pier 1 advertises a seemingly original price, in truth it is a false reference price, Panaligan says.  

“The false reference price… is shown alongside the original price to communicate to consumers that Defendant is selling a product at a substantial discount even though the product is not in fact discounted,” the lawsuit states. 

The sale price conveys the “deep discount” at which Pier 1 is purported to offer the product for a “limited time.” 

“However, the products sold on Defendant’s e-commerce website are never sold at the price displayed with a strikethrough—the price consumers are led to presume is the full original price,” Panaligan states. 

Therefore, the “deep discount” of products communicated to consumers viewing Pier 1’s website constitutes a misrepresentation, the lawsuit alleges. 

Products Sold Above True Market Price, Pier 1 Class Action Alleges

False reference pricing schemes enable retailers like Pier 1 to sell products above their true market price and value—”and consumers are left to pay the price,” Panaligan states.

She is seeking to represent anyone in California who purchased one or more products through pier1.com that were deceptively represented as discounted from a false reference price, who have not received compensation. 

She’s also seeking certification of the class action lawsuit, restitution, disgorgement of profits, an injunction, damages, fees, costs and a jury trial.

In 2020, Pier 1 recalled multiple collections of desk chairs over concerns that the chairs’ legs can break, posing a fall hazard.

What do you think of retailers listing a fabricated sale and original price? Let us know in the comments! 

The plaintiff is represented by Todd D. Carpenter and Scott G. Braden  of Lynch Carpenter, LLP.

The Pier 1 Imports Class Action Lawsuit is Maria Panaligan v. Pier 1 Imports, et al, Case No. 2:22-cv-02544, in the U.S. District Court Central District of California.

Read About More Class Action Lawsuits & Class Action Settlements:

• Dress Barn Class Action Alleges Store Uses ‘Fictitious’ Original Prices To Make Discounts Appear Larger
• Beauty Brands Turn to Talc-Free Makeup in Wake of US Cancer Lawsuits
• The Worst Car Brands Based on Class Action Lawsuits and Recalls
• Worst Smartphones, Based on Class Action Lawsuits