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False Reference Pricing Class Action Lawsuits Overview:
- Who: Consumers have recently made false reference pricing claims against numerous companies including The Children’s Place, Pier 1, Dress Barn, and Zales, among others.
- Why: Consumers claim the companies use false reference pricing to mislead their customers into believing they are getting a greater discount than what they are.
- Where: Class action lawsuits have been filed against companies nationwide.
Consumers are constantly on the lookout for the best deal. Often the deciding purchasing factor, a good discount can be hard to pass up.
Knowing this, businesses will go to great lengths to showcase their sales to entice consumers, however, some deals are not always what they appear. Most recently, JC Penney has been under fire for this practice.
False reference pricing is the act of using an inflated original price in order to make the “for sale” price appear to be a greater discount than what it actually is.
A number of class action lawsuits have recently been filed against companies accused of using false reference pricing for items listed as “for sale” on their website.
The Children’s Place, Eddie Bauer Accused of Offering ‘Phantom Discounts’
The Children’s Place faced claims last month that the company deceived consumers about “for sale” items on its website by using false reference pricing.
Consumers argue The Children’s Place provides its customers with “phantom discounts” by listing “fictitious” original prices for items it lists as “for sale.”
Also last month, an investigation began looking into discounts advertised by Eddie Bauer for items on its website.
The law firm looking into Eddie Bauer is concerned the company may be misleading its customers by offering “for sale” items that are, in reality, being sold at the products normal price.
Eddie Bauer advertises discounts of typically 30% to 50% on nearly all of the products it has listed on its website, according to the law firm.
Pier 1, Dress Barn Also Accused of Using False Reference Pricing on Sale Items
A class action lawsuit was also lobbied against Pier 1 last month by a customer who claims the company tricks its customers into paying more for its products.
The consumer argues Pier 1 uses false reference pricing to make items listed as “for sale” on its website appear to be at a greater discount than they actually are.
A similar class action lawsuit was filed against Dress Barn last month by a consumer claiming the store uses false reference pricing on its website.
In addition to giving the appearance of a larger discount, the consumer argued the alleged false reference pricing induced her to make a purchase since she believed the discount would “likely not last.”
The consumer claims that, in reality, the items listed for sale were never sold at the original reference price listed for them on the website.
Zales Allegedly ‘Artificially Inflates’ True Market Value of Products
Zale Corporation is another company which found itself on the receiving end of false reference pricing claims last month.
The consumer behind the complaint claims Zales uses false reference pricing to make items listed as “for sale” on its website appear to be at a greater discount than they actually are.
Further, the consumer argues false reference pricing used by Zales causes the true market price for the products to be “artificially inflated.”
Shutterfly Accused of Failing To Mention False Reference Pricing
A consumer accused Shutterfly last month of using false reference pricing to mislead its customers into believing they were getting a better deal on “for sale” items than in reality.
The products listed as for sale on Shutterfly’s website were never sold for the original reference price shown, the consumer argues.
Further, the consumer argues there was nothing on Shutterfly’s website that made clear the items were never sold at their displayed original reference price.
Calvin Klein Allegedly Uses False Reference Pricing At Outlets
Last September, Calvin Klein was accused of using false reference pricing on merchandise listed as for sale at outlet stores in California.
The consumer behind the complaint claims Calvin Klein is violating California and federal laws by using false reference pricing to deceive its customers into believing they are getting a greater discount.
Have you purchased an item with an advertised discount off JCPenney’s website since December 2020? You may be eligible to get legal help to recover any overpayments!
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140 thoughts onCompanies Offer Fake Discounts by Using ‘False Reference Pricing’
Yes childrens place main one. But used several more.
add me , children’s place, and zales … the worst
This has been going on since I started in retail 45 years ago. JC Penney has faced fines before. But I find that stores like Kohls and my local supermarket do the same thing.
all the stores do that with pricing
Add me
Add me, but all stores do the same thing! Especially around Black Friday or any other “on sale” day. Two weeks prior Black Friday, for instance, an item would be regularly priced at $100. On Black Friday or any other “sale” day, the sticker shows “ON SALE, Only $200, regular price $400!”
Of course
This is not meant to be disrespectful as I understand most people haven’t worked in retail marketing and not everyone is a ‘shopaholic’. That said, this has been going on for decades at multiple stores whether it is falsely inflating prices to show a sale price, famous brands opening an ‘outlet’ shop misleading consumers to think they’re buying items that used to be in retail stores when in reality they sell items made from inferior materials that were never sold in the actual branded stores, and more recently big box stores are both participating and allowing 3rd party vendors to place much higher price stickers over the upc that was created and placed by the manufacturer. A lot of sad, shady practices have always existed but when we should be helping each other the most, those that can are deceiving loyal consumers the worst.
I 100% agree with the statement: This has been doing this for decades!! (grocery stores included) Speaking of, a friend that worked for a retail grocery store, stated that the prices are inflated during the dates that a lot of families receive food stamps!!! PLEASE ADD ME because JCPENNEY will email coupon codes w/ future dates, and when you attempt to use them during those times, the price will change in the cart as you add items. The home items and shoes are the ones that I have experienced most of the pricing issues.
I think that Macy’s should be included for false reference pricing.
Wow just Wow. Time spent researching and preparing for back to school and Holiday shopping as a single parent, year after year.. So sad to know that we have been mislead and taken advantage of!