Hot Topic class action claims retailer advertises ‘fake’ sale prices

Hot Topic class action overview: 

• Who: A group of seven consumers filed a class action lawsuit against Hot Topic.
• Why: The plaintiffs say the retailer offered deceptive pricing deals that tricked consumers into thinking they were getting a deal.
• Where: The Hot Topic class action lawsuit was filed in a Maryland county court.

A new class action lawsuit accuses Hot Topic of deceptive pricing practices, claiming the retailer fabricates sales and discounts on its website to mislead consumers into believing they are getting a limited time deal.

Plaintiffs Danielle Gurney, Rebecca Lashbrook, Husnah Khan, Natalie Merritt, Darius Davis, Shanika Jones and Brittany Basham filed the class action complaint against Hot Topic Inc. on Jan. 31 in the Circuit Court of Maryland. It alleges the company engages in deceptive pricing practices by advertising fake sales and discounts on its clothing and accessories.

According to the Hot Topic sale prices class action, Hot Topic routinely advertises limited time only discounts and presents strikethrough list prices to create the illusion of substantial savings. However, the lawsuit alleges these discounts are neither time-limited nor genuine. Instead, Hot Topic’s products are always available at the discounted price, making the original “list” prices entirely fictitious, the class action states.

“As the Federal Trade Commission advises in its Guides Against Deceptive Pricing, it is deceptive to make up ‘an artificial, inflated price… for the purpose of enabling the subsequent offer of a large reduction’ off that price,” the lawsuit says, citing federal regulations prohibiting misleading price comparisons.

Fake sales violate state consumer laws, class action alleges

The plaintiffs, who purchased items from Hot Topic’s website, argue the fake prices misled them into believing they obtained a bargain on products. They claim they would not have made the purchases or would have paid less if they had known the truth.

The Hot Topic sale prices lawsuit also highlights state-level consumer protection laws in Maryland, Michigan, New York, South Carolina, Texas, Utah, Virginia and California, which prohibit unfair and deceptive trade practices. 

“Fake sales violate these laws,” the class action asserts, noting that multiple courts ruled against similar pricing schemes in the past.

The plaintiffs seek certification of the class action, damages, fees, costs and a jury trial.

Last year, a Hot Topic settlement claimed the retailer violated California and Oregon law by advertising its products with misleading discounts.

What do you think of the allegations in this Hot Topic class action lawsuit? Let us know in the comments. 

The plaintiffs are represented by Cory L. Zajdel, David M. Trojanowski and Jeffrey C. Toppe of Z Law LLC.

The Hot Topic class action lawsuit is Danielle Gurney et al. v. Hot Topic Inc., Case No. 1:25-cv-00318-JRR, in the Circuit Court of Maryland.

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