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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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141 thoughts onCompanies Offer Fake Discounts by Using ‘False Reference Pricing’
Please add me I have had this happen often
Use multiple stores listed.
please add me i have had this happen to me
Yes add me I have had my share Macy’s Walmart JCPenney and a few shaded stores
Add me
Add me please
Add me, JCPenny, Macy’s, and Wal-Mart all do that when you’re actually paying higher than their actual price.
Add me! I had a Zales credit card I closed just because of this! I would get a coupon from the previous purchase for a measly $25 and then they won’t let you use it, if you open an account you get a $25 coupon which again you can’t use. This ‘ghost’ coupon is never useable, even the ones they mail. I’ve tried all the figurations I could to use a coupon to no avail and finally had enough and closed my credit account. Now they play the ‘on sale’ game with prices, whenever it’s on sale it’s retail price is much higher, which unless you follow it closely you’ll never figure it out.
ADD ME
Joanns fabrics is also guilty of this. Much of their stock is always “on sale”. Same thing for “The Woman Within”. All of their items are always 30% to 50% off. IF AN ITEM IS ALWAYS ON SALE, ITS NOT A SALE!