Consumers Snag $4.85M Settlement in Ross Deceptive Pricing Class Action

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.

The consumers in the Ross class action lawsuit alleging the store deceptively priced items say they’ve reached a settlement agreement totaling $4.85 million.

Lead plaintiffs accused the discount retailer of tricking consumers into thinking they were getting a big discount using fake price comparison tags. The tags advertised high retail prices of items as compared to the price offered at Ross Dress For Less, but, alleged plaintiffs, the supposed retail prices were inflated and the goods never offered for such prices at other retailers.

Ross attempted to dodge the deceptive pricing class action lawsuit by opposing certification of the proposed Class. The retail discount store giant argued that the claims were not typical across the Class proposed in the class action lawsuit, but the plaintiffs pushed back, contending that each Class Member had uniformly had their rights under state law violated by the deceptive marketing.

However, the consumers lost the battle over class certification. Ross argued in a motion to dismiss the class action lawsuit that the consumers had not shown any economic loss based on the “compare at” price tags in the stores. At the point of dismissal, the consumers and Ross had already entered into settlement negotiations, making settlement a beneficial outcome for Class Members.

“Even if plaintiffs could reverse this court’s ruling on appeal, and even if plaintiffs were then able to win at trial … there is still a real and substantial risk that they would recover nothing, because the entitlement to an amount of restitution, in this case, are not certain,” states the motion for preliminary approval of the settlement agreement.

The plaintiffs’ motion in support of the Ross deceptive pricing class action settlement also notes that the agreement came after one failed negotiation and months of litigation.

“In November of 2017, the parties reached agreement at mediation and subsequently negotiated, drafted and executes the comprehensive Settlement Agreement,” notes the plaintiffs’ motion.

Ross Class Action Settlement

Under the terms of the Ross deceptive pricing class action settlement, Class Members will receive gift certificates redeemable at the discount chain. These gift certificates can also be converted to cash, albeit at 75 percent of their value.

The proposed Ross deceptive pricing class action settlement expands the proposed Class to include consumers nationwide, rather than just California consumers. Class Members include those who purchased items at Ross stores nationwide between June 20, 2011, and the present.

“In addition,” states the motion for preliminary approval of the class action settlement, “[Ross Stores] has also agreed to prominently post additional signs in each of its stores describing its comparison pricing practices and augment its primary signage as well, which directs customers to additional detail about Ross’s comparison pricing practices.”

The plaintiffs are represented by Douglas Caiafa of Douglas Caiafa APLC and Christopher Morosoff of the Law Office of Christopher J. Morosoff.

The Ross Deceptive Pricing Class Action Lawsuit is Jose Jacobo, et al. v. Ross Stores Inc., Case No. 2:15-cv-04701, in the U.S. District Court for the Central District of California.

UPDATE: January 2019, the Ross “compare at” pricing class action settlement is now open. Click here to file a claim.

UPDATE 2: On Nov. 29, 2019, Top Class Actions viewers started receiving gift cards from the Ross class action settlement worth as much as $10.49. Congratulations to everyone who filed a valid claim and got PAID!