Nike class action alleges company falsely advertised discounts

Nike class action lawsuit overview:

• Who: A consumer has filed a class action lawsuit against Nike Inc.
• Why: The plaintiff claims Nike falsely advertised discounts on its products.
• Where: The Nike class action lawsuit was filed in California federal court.

A new class action lawsuit accuses Nike of using a “deceptive reference price scheme” with online sales of its products on its website and through its mobile app.

Plaintiff Corinne Pearson filed the class action complaint against Nike on July 21 in California federal court, alleging violations of state consumer protection laws.

Pearson alleges Nike advertised discounts from reference prices that were fictitious, inducing consumers to purchase its products based on false discounts or “savings.”

“Nike’s deceptive practices mislead consumers into believing they are receiving a good deal and induce consumers into purchasing Nike’s products,” the Nike class action lawsuit says.

Pearson wants to represent all California consumers who purchased a Nike product through Nike’s website or mobile app at a discount from a higher advertised reference price in the past four years.

Class action: Nike discounts used fake reference prices

The class action lawsuit claims Nike’s false discount advertising scheme involved listing products with a slashed reference price, a purported sale price and a calculation of the purported discount as a percentage.

However, Pearson alleges that the reference prices were not the prevailing market prices for the products within 90 days of the sale, as required by California law.

“Numerous products available for sale on Nike’s website and on its mobile app include a deceptive, slashed reference price, along with a purported ‘sale’ price and a calculation of the purported discount as a percentage (‘% off’),” the Nike class action lawsuit alleges.

Pearson claims Nike products were often “on sale” for more than 90 days, and the advertised reference prices were stale and did not reflect the prevailing market prices.

As a result, Pearson claims she and other consumers were misled into believing they were receiving a good deal and purchased Nike’s products under the mistaken belief that they were receiving a discount from Nike’s regular prices.

“Absent Nike’s false reference price scheme, [Pearson] and other class members would not have purchased Nike’s products or would not have paid as much as they did for those products,” the Nike class action lawsuit says.

Pearson is suing for violations of California’s Unfair Competition Laws, False Advertising Laws and Consumers Legal Remedies Act, as well as unjust enrichment. She is seeking certification of the Nike class action, damages, fees, costs and a jury trial.

In other news, a customer is also suing Nike for allegedly failing to properly secure and safeguard consumers’ personally identifiable information during a January 2026 data breach.

Have you ever purchased a Nike product at a discount from a higher advertised reference price? Let us know in the comments.

The plaintiff is represented by Manfred P. Muecke of Manfred APC, Anna P. Prakash, Brock J. Specht and Patricia C. Dana of Nichols Kaster PLLP and Maxwell K. Weiss of Don Bivens PLLC.

The Nike class action lawsuit is Pearson v. Nike Inc., Case No. 3:26-cv-04167-CAB-DEB, in the U.S. District Court for the Southern District of California.

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