J. Crew Hit with Class Action Over Alleged Use of False Reference Prices [UPDATE]

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A proposed class action lawsuit claims J. Crew has misled consumers by advertising J. Crew Factory (JCF) products in-store and on its website with false “comparable value” prices, creating the illusion of a bargain.

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The 29-page lawsuit alleges that the retailer uses false reference pricing to “intentionally mislead” shoppers into thinking they are purchasing a product of a higher value or quality than it actually has. In reality, however, the “comparable value” prices seen at JCF retail locations and on its website are misrepresentations, as the products have “uniformly never been offered at the fictitious ‘comparable value’ prices that [JCF] lists,” the suit relays.

When consumers visit JCF stores or the website—which are distinct from those of the retailer’s separate J. Crew (JC) division—they find “comparable value” prices on every product, clothing tag and marketing material, the case describes. While these reference prices may be based on items sold in the JC division, “such a comparison would still be deceptive” because JC products are of a higher price and quality than those sold by JCF, the complaint argues.

According to the filing, the company lists items on the JCF website with the false “comparable value” prices crossed out and the lower “sale” price or “% off” amount appearing directly above. Under federal law, such “comparable value” prices must be based on merchandise of similar “grade and quality” to the product being advertised and must not be “fictitious or misleading,” the lawsuit says.

The plaintiffs, both California residents who have made numerous purchases from JCF retail locations and its online store, believed based on the defendant’s “uniform representations” that the items were being sold at a bargain price relative to the higher “comparable value” price, the suit states. As the case tells it, the women would not have paid as much, or bought the products at all, had they known that the “comparable value” prices were misrepresentations.

The lawsuit looks to represent anyone in the United States who purchased J. Crew Factory products during the applicable statute of limitations period.

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