Kate Spade Accused of Inventing Fictitious Reference Prices for Outlet Store Merchandise

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Kate Spade & Company, LLC is on the receiving end of the latest proposed class action to accuse a retailer of inventing fictitious reference pricing for items sold at its outlet stores. According to the lawsuit, Kate Spade marks its outlet store products with false reference prices, tagged as “Our Price,” and then perpetually sells the goods at supposedly steep “discounted” prices.

The lawsuit claims that, in truth, the merchandise sold at Kate Spade outlets is manufactured specifically for Kate Spade outlet stores and has never been sold anywhere else, let alone at the outlets, for the reference prices listed for the items.

 “The result,” the complaint alleges, “is a sham price disparity that misleads consumers into believing they are receiving a good deal and induces them into making a purchase.”

The plaintiff argues that the defendant’s deceptive practice leads customers to believe the products they’re purchasing have a higher value when, in reality, they wouldn’t have purchased the items “but for the false savings.”