Chico’s Advertises Fake Discounts at Outlet Stores, Class Action Claims

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Chico’s has been hit with a proposed class action centered on the clothing retailer’s alleged practice of offering fictitious discounts at its outlet stores.

The lawsuit was filed by a San Diego consumer who says he made purchases at the defendant’s Alpine, California retail location while under the impression that the items were half off. According to the case, however, Chico’s deceptively tags merchandise with false original price points. In fact, the suit says, items at Chico’s outlet stores are never offered for sale elsewhere, meaning the “discounted” prices for “direct to outlet” merchandise are the only prices at which they’re ever actually sold. From the complaint:

“Chico’s deceptive pricing scheme has the effect of tricking consumers into believing they are receiving a significant deal by purchasing merchandise at a steep discount, when in reality, consumers are paying for merchandise at its regular or original retail price.”