Deceptive Advertising at Jos. A. Bank

Alleged deceptive advertising at Jos. A. Bank men’s clothing stores convinces consumers they are getting a better bargain than they really are.

For the past decade, Jos. A. Bank has faced allegations of false pricing by perpetually running advertisements promoting “Buy One, Get Two Free” for its suits, shirts, dress pants and other items.

This leads one to believe that if a consumer purchases one suit at a “regular price,” they obtain two more at no charge.

The “regular price” of that one suit is so high that the purported discount doesn’t exist. The one purchased suit has a price that covers the cost of the other two supposedly “free” items. The “regular price” is not the price that anyone has ever actually paid for one suit at Jos. A. Bank.

History of Deceptive Advertising at Jos. A. Bank

Over the years, allegations of deceptive advertising at Jos. A. Bank have led to lawsuits from different states and private litigants.

The company settled a lawsuit in 2004 when it agreed to pay $425,000 in a deceptive pricing case. At the time, Jos. A. Bank did not admit any wrongdoing when it faced those allegations brought by then-New York State Attorney General Eliot Spitzer.

At the time, Spitzer said that deceptive advertising at Jos. A. Bank included the fact that “merchandise is perpetually ‘on sale,’” making “the so-called ‘sale price’” the actual regular price.

Georgia, Florida and California are just a few of the states that have also looked into Jos. A. Bank’s marketing tactics.

Deceptive Advertising Is Effective

In 2012, Business Insider published an article that called out Jos. A. Bank on its “Buy 1, Get 2 Free” promotion.

That particular promotion stated that if a consumer bought one suit at regular price, he would receive two more free suits, two dress shirts, two silk ties and an Android smartphone.

These promotions were made possible because Jos. A. Bank would hike up the initial price of the suit that was being purchased. This practice is called higher initial markups.

The markup is the difference between the cost of the suit and the selling price. When the markup is higher, the discount can be higher as well, but still allow the store to make a good profit.

Business Insider gives an example that a different store could sell a $400 suit at 25% off. Jos. A. Bank would sell that same suit at $1,000 and advertise it at 70% off.

The bottom line is the suit costs the consumer $300 no matter where it is purchased.

However, because Jos. A. Bank makes it appear the suit is worth $1,000, the retailer gives consumers the idea that the suit is of better quality.

Anyone who sees 70 percent off on an item is also going to believe he is obtaining a great deal. This deceptive advertising at Jos. A. Bank helped it reel in customers.

New Owner, New Strategy

In October 2015, Jos. A. Bank announced it was ending its “Buy 1, Get 2 Free” sales after the company was bought out by Men’s Wearhouse.

“Buy 1, Get 2 Free” promotions started in September 2008 as a way to generate sales when the economy tanked. The “Buy 1, Get 2 Free” sales have been a part of their business since 2012.

Doug Ewert, chief executive of Men’s Wearhouse, said the company plans to change Jos. A. Bank’s promotional message from what people plan to save to what they are going to pay.

Join a Jos. A. Bank Class Action Lawsuit Investigation

If you purchased a Jos. A. Bank clothing item that was advertised as on “sale” at a California Jos. A. Bank clothing store over the last 5 years, you may be eligible to join a free class action lawsuit investigation and pursue compensation.

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