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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
As a former store manager, and class action complainant against this company, I can say that their ads have gotten ridiculous. They used to have one ad a month and the prices actually changed on products, then they had 2 ads a month, then three, then ITC started and there were separate ads for those. It got to the point where we were literally changing the color of the signs to be compliant with the ad set, and occasionally prices change. The bag stuffing at registers for future ads had been a practice they’ve done for a long time. It’s not deceptive is just trying to get you to come back. Good luck to them wroth their suit I hope it goes better than ours did previously.
The “2 different prices” you see in catalogs are a ad price and coupon price which you need for the discount. Items in the store that have “multiple prices” and they charge you the higher amount is Inside Track Club prices which are just other coupons for members. 20% coupons come off the highest price item you purchase that’s not an exclusion. Not saying anything about the sale tactics specifically, but if your going to have a lawsuit against a company, get the information from all angles. And HF does not collect and sell the phone numbers added to there system. All it does it link your name to make sure your still getting catelogs. And mailing info is the only things the computers keep.
I’m not happy, this happened to me: 20% coupon on the highest item, however I had a coupon for the highest item which was original price of $10.99 coupon was for $8.99 (with the 20 % coupon it was $8.79, any anyone would say wow I saved money). However I purchased another item at 3.99 which I receive no discount and actually that’s the item I was going to use the 20% coupon on since I already had a coupon of 8.99 for my pliers set. they thought they were saving me money however they actually made $0.66 off of me by taking the item with the highest price and taking 20% off of it and not the $3.99 as I intended. I went back into the store and explain to them that the 20% off was supposed to be from the 3.99 item and the other item I had a coupon for $8.99 needless to say they gave me my $0.66 back. I can only imagine as many people as I see in that store $0.66 per person can turn into quite a bit of money in their pocket for false advertisement. Original: tool bag 4.99 (coupon); pliers set 8.79 (20% coupon) 3.99 jewelers clip = $17.77 + tax =$19.24, my way: 4.99tool bag; 8.99 pliers coupon; 3.99*20%=3.19 = $17.17 + 8.25 tax $1.42=$18.59. So 18.59-$19.24=.65 difference. So I went back not for the .66 but to let them know that was not right what they did. Lady was rude about it but manager was nice.
Must have been a long time ago. The register takes discount off highest item since your 20% off the highest priced item and was more of a discount than your sale price they where correct to take it off the highest price and thus not use your sale coupon. In most cases the result would be in your favor but you where a person to trick the system into saving a shopping 66 cents and required a manager as the check out person cannot over ride the cash register.
Current 4th of July sales advertising states “Lowest prices ever!” A concrete mixer that has sold for as low as $139 in previous sales & is advertising at $209 & discounted to $189, yet states compare at $812.50. Absolutely deceptive! Lowes & Home Depot are just under $200 for “similarly designed concrete mixers”
Omg I shop that store a lot they use the free gifts and the percentage off to get U in . And the item is alway higher than advertised or it’s not the exact same product.
Ive been saying for years they have been ripping people off. Look at there catalogs and they have the same item in there for two different prices. Ive argued on the phone with there headquarters about this and they dont care. If you dont find the item that is on sale in the catalog youll be paying full price because they wont tell you the same item is on sale in the same catalog. Deception
What this man is claiming is exactly what is happening in the Harbor Freight store in Staten Island, NY. I have been making purchases in this store from the day that it opened. They send you flyers and the same item has three different prices and then it is a different price when you get to the store. On their sale or discount coupons you need a magnifying glass to see the fine print. Sometimes the coupon is only good for one date only. You have to keep on your toes and play their game if you want the discounts.
Not only do they do the fake sale but they also are very aggressive collecting customer phone numbers which I assume they sell afterwards because I aint never received a call from them. I live in Orlando Florida and at the store in Casselberry I refused to give my phone number and the manager got mad because I wasnt providing the number as they wanted. I told her it wasnt a condition of the sale and that when her database got hacked, they wouldnt protect me from malicious calls. Lets just say that after that incident, I avoid the store like the plague, but the tools are so cheap compared to other knockoffs that I am always looking at their sales fliers, which I do get on the mail.
When they ask for your number, just say “No”.
Problem solved.
I had issues with those adsall the time when i buy there float maintainer chargers
If they give a lifetime warranty I am a mechanic and I’ll take that over any other tool place and be able to walk my stuff right back into the harbor freight just like Sears and get a replacement join their fast track it gets better
Harbor Freight tools are for the typical homeowner who does not use them on a daily basis. I don’t know any fellow aircraft mechanics who use them for their careers.