T.J. Maxx Class Action Says ‘Compare At’ Prices Aren’t a Bargain

A group of consumers recently filed a class action lawsuit against T.J. Maxx alleging that their “compare at” price tags are not actual competitive prices and are instead unverified estimates.

Four T.J. Maxx customers say defendant TJX Companies Inc. frequently uses “compare at” prices on their price tags, juxtaposing the higher compared price with the lower sale price offered by the store.

Plaintiffs argue that this tactic is used to drive consumer purchases by making the customer feel like they are getting a good deal. However, this is allegedly a “phantom markdown” due to the arbitrary price reportedly used on the price tag.

“Reasonable consumers, including Plaintiffs, do not interpret the comparative price to refer to a retailer’s unverified estimate of what a comparable product may have sold for in the marketplace,” the T.J. Maxx class action states.

The T.J. Maxx price tag class action claims that the “compare at” price is not representative of competitor retail prices and is instead a price which T.J. Maxx believes the products may sell for.

These “compare at” prices are typically 23 percent to 54 percent higher than the prices offered in store. Plaintiffs claim that this practice deceives the reasonable consumer by taking advantage of the “everyone loves a bargain” mentality and inducing them to believe that their purchased item is worth more than it actually is.

The T.J. Maxx class action also claims that consumers could not have known that the “compare at” price is fictitious because no information on the price is provided.

T.J. Maxx reportedly offers no information on the tag, item, or in the vicinity of the item that defines what a “compare at” price is or provides sources and context.

Plaintiffs argue that T.J. Maxx takes advantage of the consumer assumption that the “compare at” price represents actual competitor retail prices.

The T.J. Maxx customers argue that this practice of including “fictitious” markdowns on their price tags deceives consumers and violates the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).

“Defendant’s practice of advertising fictitious comparative pricing is deceptive because it creates an illusion of a discount,” the T.J. Maxx class action claims. “A reasonable person would likely be misled into believing that the person is receiving a discount and thus saving the difference between the two prices and that the good in question is of a higher quality and value.”

Plaintiffs seek to represent a Class of Florida consumers who purchased items from T.J. Maxx which bore a tag with a “compare at” price during an currently undefined statutory period. The T.J. Maxx class action seeks actual damages under FDUTPA, court costs, and attorneys’ fees.

Plaintiffs are represented by Michael E. Criden and Lindsey C. Grossman of Criden & Love PA.

The T.J. Maxx “Compare At” Pricing Class Action Lawsuit is Fuentes, et al. v. TJX Companies Inc., Case No. 1:18-cv-22767-KMW, in the U.S. District Court for the Southern District of Florida.