Fossil Class Action Lawsuit Says Outlet Pricing is Deceptive

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Watch and other accessory maker Fossil Group Inc. was hit with a class action lawsuit alleging the company uses “false reference pricing” in its outlets to dupe consumers into thinking they are getting a good deal.

Plaintiff Timur Safransky alleges in his class action lawsuit that Fossil misleads consumers using fake discounts. The marketing scheme, claims the plaintiff, induces consumers into purchasing items they believe are discounted, but actually are not.

The plaintiff says he fell for Fossil’s false reference pricing scheme in 2016 when on a shopping trip in Carlsbad, California.

“’False reference pricing’ is the act of misrepresenting the former, original or regular price of some good that is purportedly offered at a ‘sale price,’ a business practice that Defendants engage in to increase sales,” states the Fossil class action.

“During at least the past four years, Defendants have misled consumers by advertising the false former, original or regular prices which were fabricated, and corresponding phantom ‘savings’ on jewelry, wallets, bags, backpacks, belts and small leather goods sold in their Fossil Outlet Stores,” the lawsuit claims.

Safransky alleges that Fossil uses tags that indicate products are being sold at a discounted rate using a reference price. However, the reference price is often overstated and doesn’t represent the bona fide price that the Fossil products were previously sold at.

This practice violates California law, says the Fossil class action, which requires reference prices to reflect the prevailing market retail price within previous three months. Further, notes the complaint, the federal government has become increasingly concerned with the use of false reference prices and bogus sales at outlet stores.

“On January 30, 2014, four members of Congress demanded a Federal Trade Commission (‘FTC’) investigation of misleading marketing practices by outlet stores across the United States,” states the Fossil class action. “The four Members of Congress described a pricing scheme similar to the one implemented at Fossil Outlet Stores and stated: ‘[h]owever, we are concerned that outlet store consumers are being misled into believing they are purchasing products originally intended for sale at the regular retail store. Many outlets may also be engaged in deceptive reference pricing. It is a common practice at outlet stores to advertise a retail price alongside the outlet store price – even on made-for outlet merchandise that does not sell at regular retail locations. Since the item was never sold in the regular retail store or at the retail price, the retail price is impossible to substantiate.’”

The Fossil class action alleges that Fossil products specifically made for its outlet locations can be identified by a tag that says “Like Style.” The plaintiff says that Fossil markets these products using a reference price for a retail location; however, since these products are never sold at retail locations, this marketing scheme is deceiving to consumers.

Safransky seeks to represent a Class of California consumers who purchased Fossil Outlet Products at a purported discount.

The plaintiff is seeking restitution and disgorgement of all profit from Fossil under the allegedly false referencing pricing scheme as well as an order requiring Fossil to conduct a corrective advertising campaign.

Safransky is represented by Zev B. Zysman of the Law Offices of Zev B. Zysman.

The Fossil Outlet False Reference Pricing Class Action Lawsuit is Safransky v. Fossil Group Inc., et al., Case No. 3:17-cv-01865-MMA-NLS, in the U.S. District Court for the Southern District of California.

UPDATE: May 2019, the California Fossil outlet pricing class action settlement is now open. Click here to file a claim.