J.Crew Class Action Says Factory Website Pricing Deceives Customers

A class action lawsuit says J.Crew dupes customers into buying apparel at what appears to be a significant discount through its factory website, but in actuality the products are sold at regular retail prices.

Lead plaintiff Dana Delman claims in her class action lawsuit that the J.Crew Factory website purports to sell a variety of goods at discounted prices, but purchasers are being deceived.

The plaintiff alleges that “in the vast majority of cases, there is no discount of the magnitude asserted, or no discount at all, and the goods are being sold at their ordinary retail prices.”

“By not delivering the value represented, Defendants are breaching their contracts with consumers, and are also engaging in deceptive conduct,” the J.Crew class action states.

Delman says she used the J.Crew Factory website to purchase a number of items in March, July and September of this year, including shirts, dresses, pants and leggings, at what she thought was a significant discount. The plaintiff alleges that the J.Crew Factory website advertises items at a “valued at” price, which is greater than the price consumers pay at the website.

However, Delman’s attorneys hired a investigator who reportedly discovered that the various items the plaintiff bought could not be found at other retailers for the “valued at” price that the J.Crew Factory website listed the items.

“[T]he investigation determined that items comparable to goods purchased by Plaintiff and other relevant Factory Website consumers could be purchased in the market at or below the ‘Your Price’ price. Thus, there is no discount or bargain based on comparable prices,” concluded the complaint.

The plaintiff alleges that the “valued at” price is “fictitious” and is “designed to induce customers to purchase apparel with the expectation that they are obtaining items with a high value.” According to the class action, J.Crew’s claim that the “valued at” prices are comparable is “baseless.”

“Defendants’ actions create the false impression that consumers are buying goods at huge discounts to ordinary prices from a factory outlet website offering discount, close-out and marked-down merchandise,” alleges the J.Crew class action. “But this is not the case—the goods are designed and fabricated by J.Crew specifically for the Factory Website (and Factory brick and mortar stores), and there are no discounts of the asserted magnitude to be had.”

“Indeed, in previous litigation, J.Crew has admitted that the Factory Website prices are not mark-down prices, even though this is the impression its marketing fosters and conveys,” the complaint states.

The plaintiff seeks to represent a Class of purchasers of items from J.Crew’s Factory website. She claims that J.Crew violated various California state business laws.

Delman is represented by David N. Lake of the Law Offices of David N. Lake, Laurence D. Paskowitz of The Paskowitz Law Firm PC, and Roy L. Jacobs of Roy Jacobs & Associates. 

The J.Crew Factory “Valued At” Pricing Class Action Lawsuit is Dana Delman v. J.Crew Group, et al., Case No. 2:16-cv-09219, in the U.S. District Court for the Central District of California.