Class Action Claims Nine West Outlet Store Pricing Violates California Law
Last Updated on May 8, 2018
Covell v. Nine West Holdings, Inc. et al
Filed: July 5, 2017 ◆§ 3:17-cv-01371-H-JLB
A class action lawsuit filed in California alleges Nine West offers 'sham' suggested prices and 'phantom discounts' at its outlet stores.
A California consumer claims in a proposed class action that Nine West Holdings, Inc. unlawfully advertises fictitious prices and corresponding “phantom discounts” for its outlet store merchandise. The lawsuit, which kicks off by rhetorically asking “If everyone is getting a deal, is anyone really getting a deal?”, claims Nine West’s alleged sham pricing disparity misleads consumers into thinking they’re receiving a good deal, and thereby induces shoppers into making purchases.
The alleged fake discount scam stems from the “suggested retail price” at which Nine West advertises its outlet store products. On its outlet store goods, Nine West attaches two price tags, the lawsuit says, one that sets a “suggested retail” price, and another that touts an “our price” discount. The grift, the lawsuit alleges, is that Nine West’s “suggested retail” tag prices are entirely made up.
“The advertised discounts are fictitious because the regular reference price, or the ‘sugg. retail’ price, does not represent a bona fide price at which Nine West previously sold a substantial quantity of the merchandise for a reasonable period of time as required by the Federal Trade Commission,” the lawsuit asserts.
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