Ross Stores Hit With $5M False Sale Class Action Lawsuit

A false sale class action lawsuit was filed June 20 against retailer Ross Stores for advertising that their merchandise is “20-60% off department store prices every day.”

Lead plaintiff Jose Jacobo filed the proposed Ross class action lawsuit over claims of false advertising practices which include “compare at” prices on sales tags. Jacobo alleges that the retail store uses deceptive methods to lure customers into believing that they are getting a “sale price” when the company actually uses misleading measures to inflate comparative prices.

According to the Ross class action lawsuit, merchandise sales tags are marked with both a “compare at” and a “Ross price” and the difference between the two figures is usually substantial. Jacobo insists that it was the “compare at” price that encouraged him to purchase products from Ross Stores. The plaintiff further claims that had he been aware that Ross was using a pricing scheme, he would not have purchased the items.

It wasn’t until Jacobo logged onto Ross’ website that he found out that the “compare at” price on price tags is not a reflection of the actual item sold in other stores but rather a “similar product” or even prices of products with “similar styles.” The “Compare at Pricing” is explained on Ross’ website as a “recent documented selling price of the same or similar product in full-price department stores.” The explanation continues to state that when identical products are not found they “compare the price to similar products and styles.”

Jacobo alleges that by Ross misrepresenting that prices would always be better at their retail store, it was “likely to discourage consumers from making the effort to search elsewhere for lower prices.” He believes that Ross’ false advertising scheme that was represented on price tags, in-store advertising, print and internet advertising was part of a massive campaign that took place throughout the state of California for years.

The Ross false sale class action lawsuit claims that the retailer is also in violation of the Federal Trade Commission Act. According to the FTCA, advertisers must be able to back up their claims with evidence and cannot mislead reasonable consumers into believing marketing statements by omitting information in order for them to buy or use a product.

If approved, the Ross false sale class action lawsuit would be open to all residents of California who purchased items from one of the 240 Ross stores located throughout the state between June 20, 2011 and the present. Potential Class Members could not be past or present employees of Ross Stores. Jacobo is seeking financial compensation in the amount of $5 million on behalf of himself and possible Class Members.

Jacobo is represented by Douglas Caiafa, Esq. of Douglas Caiafa, A Professional Law Corporation and Christopher J. Morosoff, Esq. of the Law Office of Christopher J. Morosoff.

The Ross Stores False Sale Class Action Lawsuit is Jose Jacobo v. Ross Stores Inc., Case No. 2:15-cv-04701 in the U.S. District Court for the Central District of California Western Division.

UPDATE: On May 30, 2017, the plaintiff in a class action lawsuit alleging Ross falsely advertises its “compare at” prices on sales tags asked a federal judge to certify a proposed Class. At the same time, Ross asked the judge to dismiss the class action.

UPDATE 2: On June 7, 2017, the plaintiffs in a class action lawsuit accusing Ross Stores Inc. of using deceptive pricing tactics have fought back against the retailer’s motion for summary judgment, arguing that the evidence supports their claims that Ross violated consumer protection laws.

UPDATE 3: On Sept. 29, 2018, consumers in the Ross class action lawsuit alleging the store deceptively priced items say they’ve reached a settlement agreement totaling $4.85 million.

UPDATE 4: January 2019, the Ross “compare at” pricing class action settlement is now open. Click here to file a claim.