Class action accuses Hurley of misleading shoppers with false sales at outlet stores

Hurley class action lawsuit overview:

• Who: Plaintiff Kyle McCarty filed a class action lawsuit against Hurley International LLC.
• Why: McCarty claims Hurley uses fake discounts at its outlet stores.
• Where: The Hurley class action lawsuit was filed in California federal court.

A new class action lawsuit claims Hurley International misleads consumers into overpaying for products sold at its outlet stores by using fake discounts.

Plaintiff Kyle McCarty’s class action lawsuit alleges Hurley advertises fake discounts off of inflated and fictitious original prices at its outlet stores to drive up demand.

“Retailers like Defendant exploit this dynamic by advertising deceptive discounts that promise significant savings,” the Hurley class action lawsuit says.

McCarty wants to represent a nationwide class and California class of consumers who purchased one or more products from a Hurley outlet store at discounts from an advertised reference price during the applicable statute of limitations period.

The plaintiff accuses Hurley of violating California’s Unfair Competition Law, False Advertising Law and Consumers Legal Remedies Act and engaging in fraud by omission and affirmative misrepresentation and unjust enrichment.

McCarty demands a jury trial and requests declaratory and injunctive relief and an award of actual, consequential, statutory and punitive damages for himself and all class members.

Class action: Hurley fake discounts create ‘artificial market pressure’

McCarty argues Hurley’s use of fake discounts creates “artificial market pressure and perceived scarcity or value” that triggers an increase in consumer willingness to pay.

“Over time, this shifts the market equilibrium, allowing the seller to profit from a manufactured illusion of value,” the Hurley class action lawsuit says.

McCarty claims Hurley’s conduct violates multiple state and federal laws, including California’s Unfair Competition Law, False Advertising Law and Consumers Legal Remedies Act and the Federal Trade Commission Act.

The plaintiff argues Hurley’s fake discounts lead consumers to believe they are receiving a bargain when, in fact, they are overpaying based on an inflated, imaginary benchmark.

Earlier this year, three consumers filed a class action lawsuit against Fossil Group, accusing the company of posting fabricated former and regular prices to create the illusion of discounts on products sold on its website and at Fossil Outlet Stores in California.

Have you ever purchased merchandise from a Hurley outlet store? Let us know in the comments.

McCarty is represented by Todd D. Carpenter and Scott G. Braden of Lynch Carpenter LLP.

The Hurley class action lawsuit is McCarty v. Hurley International LLC, Case No. 3:25-cv-02117-JO-SBC, in the U.S. District Court for the Southern District of California.

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