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A California man claims in a new class action lawsuit that Harbor Freight Tools has been using several different deceptive pricing schemes to induce sales.
Plaintiff Ted Shimono says that discount tool retailer Harbor Freight Tools advertises “fake sale” prices to make customers think certain items are being offered at a significant discount when they’re actually not.
He says this tactic entices customers to buy lower-quality merchandise at inflated prices.
According to the Harbor Freight Tools class action lawsuit, many items for sale were marked with a purported original price, described in the store’s advertising as a “regular,” “retail” or “comp[are] at” price.
Shimono claims these prices are artificially inflated. He also says the merchandise was never offered for sale at the purported original price.
Shimono argues that many of these “original” prices are inherently arbitrary and contrived by Harbor Freight Tools. He says many of these items are sold exclusively by Harbor Freight Tools, such as the store’s own house-brand products. Since these items are sold through only one retailer, there is no actual market for them – and therefore no determinable market price, Shimono says.
In comparison to these advertised “original” prices, the prices at which the items for sale seem significantly lower, creating the impression of a discount that doesn’t actually exist, Shimono claims. He says Harbor Freight Tools uses this allegedly false discount to induce customers into making purchases.
The Harbor Freight Tools class action lawsuit argues this pricing tactic specifically runs afoul of particular California state consumer protection laws. Shimono argues the retailer’s pricing violates the California Unfair Competition Law, the False Advertising Law, and the Consumer Legal Remedies Act. The tactic also violates the Federal Trade Commission Act, the plaintiff says.
Shimono further takes issue with another of the defendant’s advertised discounts. Harbor Freight Tools publishes coupons that say “20% off your purchase” in large bold print, but then qualify that offer with much smaller print that reads “of any one item.”
Shimono says not only does the advertisement obscure the fact that the discount applies only to a single item and not the entire purchase, but also that Harbor Freight Tools will apply the discount only to the lowest priced item in the purchase – not “any” item, as advertised.
Finally, Shimono says Harbor Freight Tools advertises multiple different prices for the same item, then charges customers the highest of those prices when they make their purchase.
Shimono proposes to represent a plaintiff Class consisting of all persons in the U.S. who bought products from the defendant for their own personal use at an allegedly false “sale” price within the four years prior to the filing of this Harbor Freight Tools class action lawsuit.
He seeks an award of damages and restitution of the money with which the defendant has been allegedly unjustly enriched at Class Members’ expense.
Counsel for the plaintiff and proposed Class are Ronald A. Marron, Skye Resendes, William B. Richards Jr., Michael T. Houchin of the Law Offices of Ronald A. Marron; and David Elliot of the Law Office of David Elliot.
The Harbor Freight Tools Fake Sale Class Action Lawsuit is Ted Shimono v. Harbor Freight Tools USA Inc., Case No. 5:16-cv-01052, in the U.S. District Court for the Central District of California.
UPDATE: On May 16, 2017, a settlement has been reached in a class action lawsuit alleging Harbor Freight Tools USA Inc. deceptively advertised products as being on sale by listing an inflated “compare at” price.
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50 thoughts onHarbor Freight Tools Class Action Alleges ‘Fake Sale’ Pricing
They are very cheap. I told my boyfriend not to buy anything there but no he buys $350 worth of tools there. He says cause the were cheap. I said yes cheap is right. I was pissed.
Bad thing about it is that if you buy it from them and something happens to it you return it and want you to upgrade to the better one for a few bucks more get it home and still brakes its made cheep sold cheep and not worth it in the long run
They do that here in Morristown Tennessee an Knoxville Tennessee to they have done this for as long as me an my ex were together an he would go to the Knoxville store an they would have advertising lower price an then wgen they opened the one in our home tow n same thing !!
I shop there often and you get what you pay for. The stores near me put broken returns right back on the shelves so inspect your purchase before leaving the store is good advice.
HFT sells junk. Deceptive pricing should be the least of anyones worry.
true
There is always one person in the comment section of every message function that justifies his existence by trying to shame people. TT, you are just full of joy and hope for this world, aren’t you?
whine whine whine….if you want to pay retail, go to Home Depot. Harbor Freight prices win out sale or not!
Even better is when you get there and conveniently they don’t have the product in stock and conveniently stock order is comming in that night but the sale was only 2 days and it’s the last day.
They are also good at advertising more then one week at a time, you get all these notifications and prices and then when you go to the store you get charged the higher price and tell you that oh, that price is not till next week, they why send them out at the same time? I have learned you have to read their entire ad and the fine print before you go to the store so you do not get screwed..I have been burnt twice as well as going there day sale starts and they do not have the item, how do you run out on the very first day of sale?
hubby buys stuff from them all the time
THEY SELL MADE IN USA STUFF BUT IT REALLY COMES FROM CHINA. IF YOU LOOK IN BACK LABLE YOULL SEE IT.
There is actually a USA China.. that is how they trick people