Harbor Freight Tools Reaches Class Action Settlement Over Fake Sales

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A settlement has reportedly 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.

On Tuesday, a California federal judge dismissed the Harbor Freight Tools class action lawsuit upon the request of both parties who informed her that they had reached a confidential settlement. The parties reportedly reached the proposed class action settlement in April.

If approved, this proposed fake sale settlement will resolve a class action lawsuit filed last year by plaintiff Ted Shimono, who alleged Harbor Freight Tools deceives consumers by advertising products at “sale” prices next to inflated “compare at” prices.

Shimono provided the example of a 50-foot retractable hose made by Central Pneumatic, which was sold by Harbor Freight Tools at a “sale” price of $89.99 and a “compare at” price of $166. However, Shimono claims that this “compare at” price is deceptive because the same Central Pneumatic hose was available at Amazon.com for $67.29 and on the Home Depot website for $64.98.

The Harbor Freight Tools class action lawsuit asserted claims for violations of various California consumer protection laws, including the Unfair Competition Law, False Advertising Law, and the Consumer Legal Remedies Act.

By filing the Harbor Freight Tools class action lawsuit, Shimono sought to represent a Class of consumers who purchased items advertised at a discount from Harbor Freight Tools in the last four years.

Harbor Freight Tools sought to have the fake sale class action lawsuit dismissed, but last fall U.S. District Judge Christina A. Snyder denied the dismissal motion.

Top Class Actions will post updates to this proposed Harbor Freight Toolsclass action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the green “Follow Article” button at the top of the post.

Although more information is not yet available about this most recent Harbor Freight Tools class action settlement, consumers who have purchased purportedly discounted merchandise from Harbor Freight Tools may qualify as Class Members of a separate class action settlement (Jeffrey Beck v. Harbor Freight Tools USA Inc.) that was preliminarily approved in December 2016.

If you purchased merchandise from Harbor Freight Tools that was advertised with a higher “compare at” price between April 8, 2011 and Dec. 15, 2016, you may be eligible for a partial refund or a $10 Harbor Freight Tools gift card from the Beck class action settlement. The deadline to file a claim for this Harbor Freight Tools settlement is Aug. 7, 2017.

Shimono is represented by Ronald A. Marron and Michael T. Houchin of the Law Offices of Ronald A. Marron and by 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-CAS, in the U.S. District Court for the Central District of California.