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A new DSW class action lawsuit accuses the shoe retailer of tricking consumers into thinking they’re getting a bargain that may not even exist.
Plaintiff Amy Evans says that some of DSW’s inventory consists of products purpose-made for exclusive sale at DSW stores, under certain DSW house brand names.
These brands include Kelly & Katie, Lulu Townsend, Poppie Jones, Audrey Brooke, and One Wink. All these brands are trademarked by DSW, according to the class action lawsuit.
DSW’s price tags for items sold under these brands include “Compare At” reference prices, Evans says. But since these “DSW Exclusive Products” are never sold through any other store besides DSW, Evans argues they have no real original price other than whatever price DSW offers them for.
According to DSW’s filings with the Securities and Exchange Commission, the company makes a point of keeping its merchandise at the same price from the time it arrives at the store until it gets moved into clearance rotation.
Therefore the price at which DSW first offers a “DSW Exclusive Product” for sale is the true original price, and any other marked “Compare At” price is a fiction arbitrarily created by DSW, Evans argues.
Language from DSW’s website shows that for at least some of its merchandise, the company has been generating its own “Compare At” prices, Evans claims. She says the company recently added language to its definition of “Compare At” stating “when an MSRP is not available, the COMPARE AT price is our estimate of other retailers’ ticketed prices for the same or similar items.”
Evans believes DSW uses this strategy to generate fake original prices for its “DSW Exclusive Products.”
The plaintiff argues DSW uses these “Compare At” prices to give customers the impression that the item is being offered at a bargain price, when in fact it’s not being offered at any discount at all. This illusory bargain induces consumers to make purchases they may not have made otherwise.
The deception extends to the receipts DSW gives their customers after a purchase, Evans says. She includes in her DSW class action lawsuit an image of a receipt showing the words “YOU SAVED $29.05” at the bottom, representing the purported discount on an item with a “Compare At” price of $60.
If certified by the court, Evans’s proposed Class will represent all residents of California who, within the applicable statute of limitations period, bought a “DSW Exclusive” product marked with both a higher “Compare At” price and a lower actual selling price from a DSW store.
The DSW class action lawsuit seeks restitution and disgorgement of profits DSW gained as a result of the practices complained of here, plus reimbursement of court costs and attorneys’ fees.
Evans is represented by Kristen Law Sagafi, Martin D. Quiñones, Hassan A. Zavareei, and Jeffrey D. Kaliel of Tycko & Zavareei LLP; Jeffrey M. Ostrow and Scott A. Edelsberg of Kopelowitz Ostrow PA, and by Wayne S. Kreger.
The DSW Fake Sale Class Action Lawsuit is Amy Evans v. DSW Inc., Case No. 2:16-cv-03791, in the U.S. District Court for the Central District of California.
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37 thoughts onDSW Class Action Says Pricing Strategy Deceives Customers
count me in too ,i just bought shoes there with a 20.00 discount the same shoes were in another store same price with out discount
Count me in!
Bought shoes for my girl thought I was getting deal COUNT ME IN
Count me in
I bought their shoes too and after the first wear the color wears off. Wish I could be reimbursed for every pair over bought.
I had no idea they made Kellie and Katie. Now I feel ripped off paying $40 for a pair of flip flops compared to $60.
bought some expensive boots and the heel come apart. took them back and was treated like a criminal. It was within 30days of purchase. I did not get a refund.
how can you get in this class action?? I hate it when places say something is on sale and raise the price first. how sad!
I agree I have bought shoes from DSW, just like Many which cost a reasonable dollar. They also have both brand shoes and shoes sold In other woods same brand and same shoe(s) will be sold at other retailers. You are in good shape getting decent/good to great/amazing quality shoes which have both pros and cons. Do you really think that this is the only store which does this and the only brand which sells the rights to many manufacturers in different countries. For you acids shoppers if you look at the make model sku# and colors of a certain pair of shoes. Look close at where they are manufactured and see if you don’t see that brand anywhere else… Rather see if this claim is a crock pot of bull hole… Yes that’s a real meal real too, not for me! So if you can step back and before you complain recognize who easy it can be to find a third world manufacturing company and then lease or buy a decent size where house get a license in certain states as an LLC and sell out to all the retails but on special lines you make them only available to one store as they promise to press and show previous sales that can bad their bidding on that special lines shoe model and maybe have three retailers only one in each corner of the state or a big one and two little ones. It’s worth it and it’s best for business. Are you being ripped off? Well you buy from a second place store and why is that you want the same look or second best pair of shoes which in turn make you the ultimate decision maker. Which decides to buy or not buy! I have never had been told or pressured to buy in DSW. When I buy from the big franchise name brand stores then I pay top dollar and expect top quality. I don’t think this is a bad case and point but the bottom line what are you arguing that you bought cheaper shoes that may or may not have a cheaper quality manufacturers? Or could be the same and you just had to have it, did you shop elsewhere? Why not go to Payless and buy their shoes and have the same complaints?? Cause you chose not to, what made you buy dsw? I bought my shoes cheap and I bought then where I loved them and some inhaled and took them back and they are more than reasonable given me my shoes credit in full plus extra %off any shoe or shoes of my choice… Do some research who do you go after dsw the shoe distribution center or the manufacturer or all three? Unless you have a class action petition you may as well have big pockets and be in business law with a couple lawyers or not bother take them back to the store where you got them explain nicely to the manager and manger or regional only. Express your concern and go shortly. I’m sure they will be more than willing as well as expectations as you say firm with great concern and respect and they will give you the same respect as well as the a better result or the same result if you didn’t know how class action lawsuits work with nor money the lawyers get a big % I know and then adjuster if any get a commission cut, and then the fees have to be paid and not always get payed by the winning or losing party. After the cuts are all gone then, the amount of money left over literally get split between everyone in th class action lawsuit. If you get $50-$100 ok I know DSW will do what they can to get you what you expect and same day not weeks or months later…
I was tricked into buying a product by false advertisement