Macy’s, Bloomingdale’s Class Action Says ‘Sale’ Prices Deceptive

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A proposed class action lawsuit has been filed in California federal court against Macy’s and its wholly-owned division Bloomingdale’s alleging that the companies engage in deceptive and misleading marketing of merchandise.

Plaintiff Zohreh Farhang filed the complaint against Macy’s and Bloomingdale’s alleging that its retail and outlet stores “misrepresented the nature and amount of price discounts on products sold in their regular and outlet stores.”

Farhang claims that Macy’s and Bloomingdale’s artificially inflates the regular prices of items and these listed prices “did not represent a bona fide price at which they previously sold products or the prevailing market price for such items.”

After the department stores allegedly marked up the prices, they went on to mark the items on sale for a reduced price, which was supposed to be a significant discount off of the purported original, regular or suggested retail price, Farhang claims

“In some instances, they represented that the listed or original price was two or more times the manufacturer’s suggested retail price (‘MSRP’), and then offered the item at a purported 50% or more discount price which was in fact the original MSRP,” the complaint reads.

Farhang further claims that the original prices listed by the companies were “a sham.” She asserts that these items were not ever sold at their original prices, including the period of 90 days prior to the items being listed as “on sale.”

Rather than reflecting a true markdown, the complaint argues, “The original, regular, or compare at price listed on Defendants’ products were and are prices chosen by Defendants to enable them to engage in their phantom markdown scheme.”

The plaintiff claims that she purchased items from Macy’s stores believing the original price listed to be true and accurate. However, she argues that the representations made by the company regarding the “fake sales” were misleading, Farhang states that she would not have made her purchase had she known the truth.

Farhang is seeking to represent a Class of California consumers who purchased products from Macy’s, Macy’s West or Bloomingdale’s “where the price paid was at a sale or discount to the original, regular or compare at price listed on the tag for that item and such individuals have not received a refund or credit for such purchases.”

The lawsuit alleges several counts against Macy’s and Bloomingdale’s including violation of California’s Unfair Competition Law, fraudulent business practices, unlawful business practices and violation of the California False Advertising Law.

In addition to class certification, Farhang is also seeking a judgment for damages, restitution or other relief including disgorgement of profits, an order enjoining the companies from continuing their allegedly unlawful practices, as well as attorneys’ fees and costs and pre- and post-judgment interest.

The plaintiff is represented by Robert S. Green and James Robert Noblin of Green & Noblin, P.C.; and Kenneth G. Gilman of Gilman Law LLP.

The Macy’s and Bloomingdale’s Fake Sale Class Action Lawsuit is Zohreh Farhang v. Macy’s Inc., et al., Case No. 3:16-cv-02850, in the U. S. District Court for the Northern District of California.