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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
I was recently at DSW and noticed they were selling fake UGGS and fake PAJAR boots. PAJAR boots are made in Canada. The tag said made in China. My ex boyfriend bought me a pair of PAJAR boots online from Planet Shoes…I immediately knew they were knockoffs. They were claiming however it was the real deal. So, now I am familiar with spotting the fakeness. It’s sad because people don’t know this when seeing these boots in the store. Paying almost 200 dollars.
Count me in!!!
I have purchased several shoes from them, please count me in.
Please keep me updated, I would like to participate in this law suit
I bought shoes there for my husband a few times and the soles of the shoes were seperating from the actual shoe… Expensive brands cheaply made.
Yes, that is one of the reason why I stopped buying from them online and in stores. I even had a used pair of shoes mailed to me from a online order for $60.00 shoes, after that – no more DSW Shoes.I use to buy their shoes like crazy!
I’ve purchased many pairs of these shoes….need to get link to lawsuit.
How do I get into this suit? I purchased 5 pretty of shoes from the Greenville, South Carolina store and purchased 2 prs from the Columbia,SC stores. The heels on 2 or broke,and the color changed on the brown snake shoes. Let me in I feel cheated
Continue this great Success of not letting us consumers to get ripped off. I have gotten ripped off by so many stores by their fake sale. Count me in.
Oh my gosh…I was taken advantage of and can’t believe still shop there. I feel so used. Well I’ll soon forget and continue to shop there