Zara Class Action Says Euro Price Tags are Deceptive

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Zara USA Inc. is facing a class action lawsuit that accuses the retailer of using deceptive pricing practices that cause customers to overpay for their merchandise.

According to the deceptive pricing class action lawsuit, Zara includes only the euro price of many of its products.

“Since the euro is a larger unit of currency than the American dollar, these euro prices lead shoppers in the United States to believe that Zara’s products are less expensive than they actually are,” the Zara class action lawsuit states.

American customers are lured in by these seemingly lower prices, and do not realize how much an item actually costs until they bring the merchandise to the register, the Zara class action lawsuit alleges.

However, these prices may not be accurate dollar equivalents to the listed euro price because Zara allegedly arbitrarily inflates the price it charges American customers.

Even when products include a price tag listing the dollar price, the dollar price is still in excess of the converted amount of the euro price, the Zara class action lawsuit claims.

When questioned about the markup, Zara employees reportedly falsely inform customers that the listed dollar price reflects the conversion rate at the time the product was manufactured.

Plaintiff Devin Rose says he purchased three shirts from a Zara store in Sherman Oaks, Calif., on May 17, 2016.

According to the Zara class action lawsuit, he was enticed by the €9.95 price tag for each of the shirts. However, when he went to the register to pay for the shirts, he says he was charged $17.90 for each shirt.

When he asked about the price discrepancy, Rose was reportedly told that it was due to the conversion rate between euros and dollars.

Unable to get a satisfactory explanation about the pricing discrepancy at the Zara store, Rose says he called a Zara customer service hotline and spoke with a customer service representative.

According to the Zara class action lawsuit, Rose was told that the conversion rate applied to each shirt Rose purchased was the one that prevailed at the time of manufacture.

Rose claims that, based on the actual euro-dollar exchange rate, the shirts he purchased should have cost about $11.26 each.

He accuses Zara of imposing a markup of nearly 60 percent for the merchandise.

According to the class action lawsuit, “Zara is engaged in a widespread practice of deceiving American consumers through a classic bait and switch.”

Rose claims Zara has been unjustly enriched “to the tune of billions of dollars.”

The plaintiff seeks to represent a nationwide Class and a California subclass of consumers who purchased Zara products.

The Zara class action lawsuit asserts claims for negligence, negligence per se, unfair business practices, unjust enrichment and fraud. Rose seeks compensatory damages, punitive damages, restitution, disgorgement of revenues, injunctive relief, court costs, and an order compelling Zara to engage in a corrective advertising campaign.

Rose is represented by Mark J. Geragos and Ben J. Meiselas of Geragos & Geragos APC.

The Zara Deceptive Pricing Class Action Lawsuit is Devin Rose v. Zara USA Inc., et al., Case No. 2:16-cv-06229, in the U.S. District Court for the Central District of California.