Walmart Rollback Price Adjustment Allegedly Advertises Fake Prices

Walmart was recently hit with a class action lawsuit, with consumers alleging that a Walmart rollback price adjustment is deceptive to consumers because it is based on false prices.

According to the Walmart rollback price adjustment allegations, the retail giant allegedly used false reference prices to trick consumers into believing they were saving money by purchasing “discounted” products when they were actually paying the full, regular price.

The Walmart class action lawsuit was filed in April, alleging the giant retailer used deceptive marketing tactics to encourage bargain-hunting consumers that they were saving money through the Walmart rollback price adjustment.

However, the Walmart rollback price adjustment allegedly used fake original prices of products which were marketed at “discounted” prices. As a result, the plaintiff claims, customers who thought they were paying a “sale” price were actually paying the ordinary full price.

Overview of Walmart Rollback Price Adjustment Allegations

The Walmart class action lawsuit was filed by plaintiff Brenna Ceja after discovering the alleged fake sale pricing scheme in the Walmart rollback price adjustment sales promotion.

The California resident claimed the Walmart price adjustment process had manipulated prices to make it seem like consumers were saving money on purchases by using fake original prices.

Ceja cites California law in the Walmart class action lawsuit, pointing out that state law restricts this kind of alleged fake sale pricing. California marketing laws requires any “former price” marketed by companies must have been the prevailing market price for the item advertised within three months of the advertisement. In addition, the advertised item must state the date in which the former price was the prevailing price.

The Walmart class action lawsuit also states the Walmart rollback price adjustment is contrary to guidelines published by the Federal Trade Commission (FTC), describing this marketing strategy as deceiving. According to FTC guidelines, the fake original prices created the impression of a bargain when the consumer “is not receiving the usual value he expects.”

Walmart allegedly advertised these fake prices to make bargain hunting consumers believe they were buying these products at a discount, when they were actually buying these products at full price.

The Walmart class action lawsuit states that the Walmart rollback price adjustment system had displayed fake sales prices, which were “prominently displayed directly above the purportedly ‘rolled back’ items.” These displays allegedly expressed references to former “Was” prices that never existed.

The Walmart class action lawsuit includes photos of merchandise that featured the Walmart rollback price adjustment next to the original price tag beneath, with the sale price and original price appearing to be identical in some photos. In addition, some of the “Rollback” price tags show a “Was” price higher than the price on the regular price sign.

Walmart allegedly did this to encourage consumers to buy merchandise. Under federal and state marketing laws, companies are prohibited from making false or misleading statements regarding the prices of products.

Ceja is seeking to represent a large plaintiff class, which would consist of all United States consumers who bought items under the Walmart rollback price adjustment. The plaintiff class would have made these purchases from April 20, 2013 to the date of final judgment.

The Walmart Class Action Lawsuit is Brenna Ceja v. Walmart Stores Inc., Case No. 2:17-at-00427, in the U.S. District Court for the Eastern District of California.

Join a Walmart ‘Rollback’ Sale Pricing Class Action Lawsuit Investigation

If you shop at Walmart and you purchased products that are part of a “Rollback” sale, you may qualify to join this Walmart class action lawsuit investigation.

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