Pep Boys Class Action Lawsuit Alleges Deceptive Pricing Scheme

A class action lawsuit has been filed against Pep Boys – Manny Moe & Jack of Delaware Inc. alleging the automotive parts company engages in a deceptive two-tiered pricing scheme resulting in in-store customers paying significantly more for the auto parts and services than customers who purchase goods and services on the web.

Plaintiff Debra Silver alleges she has been a loyal customer of her local Pep Boys store and trusted the service department to provide her with auto parts and services at the lowest possible prices.

She says she believed she was receiving the lowest possible prices because she received a Pep Boys discount for the auto parts she needed.

“However, Ms. Silver’s local Pep Boys’ store’s service department over charge her 50% to 80% more than she should have paid for these auto parts, exclusive of any labor charges to install these auto parts, and after application of the discount,” the Pep Boys class action lawsuit states.

Silver claims that Pep Boys operates a two-tiered pricing scheme. According to the Pep Boys class action lawsuit, customers who visit the Pep Boys website see one set of advertised prices for auto parts, but customers who visit the store’s service department are charged a premium over the website’s advertised prices for the exact same auto parts.

According to the Pep Boys class action lawsuit, this pricing scheme violates the New Jersey Consumer Fraud Act and the Automotive Repairs Regulations.

On Sept. 23, 2015, Silver dropped off her vehicle at a Princeton, N.J., Pep Boys store for repairs, the auto parts pricing class action lawsuit states. The store later called her and offered to sell her a pair of Prostop Rear Disc Brake Rotors for $173.56, exclusive of labor, an offer that Silver accepted.

Silver says she later looked up the price of the same brake rotors on the Pep Boys website and discovered that they were advertised for $91.98, a much higher price than she paid at the Pep Boys service department.

“Defendant’s store’s service department initially charged Plaintiff a pre-discount work order price of $173.56 but then applied a discount that resulted in a post-discount receipt price of $147.53,” the Pep Boys class action lawsuit asserts.

“Thus, Defendant’s store’s service department charged Plaintiff a post-discount part price of $147.53 as opposed to charging Plaintiff their advertised part price of $91.98,” the Pep Boys class action lawsuit continues. “This represents a 62% increase in price for the exact same part and part number, exclusive of any labor charge to install this part, and after application of the discount toward Plaintiff’s final bill.”

Silver says she was never told that the exact same part was advertised at a far lower price on the Pep Boys website. Therefore, she left the dealership with the “good faith but misplaced belief” that Pep Boys provided her with the lowest possible price for the auto part she purchased.

She says she had a similar experience when she took her vehicle in to Pep Boys for repairs in April 2016 and later discovered the auto parts she paid for were advertised online at a much lower price.

Silver seeks to represent a Class of consumers who received a discount at any New Jersey Pep Boys service department for the purchase of auto parts, and who paid more for the auto parts than the price advertised on the Pep Boys website.

The plaintiff is represented by Sean F. Forlenza of The Law Office of Sean F. Forlenza, Esq., Attorney at Law.

The Pep Boys Pricing Class Action Lawsuit is Debra A. Silver v. Pep Boys—Manny, Moe & Jack of Delaware Inc., et al., Case No. 3:17-cv-00018-FLW-LHG, in the U.S. District Court for the District of New Jersey.