Under Armour Lawsuit Alleges Factory Outlet Stores, Website Advertise Bogus Discounts

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A proposed class action lawsuit accuses Under Armour of engaging in a false discounting scheme to mislead consumers into believing they are getting a bargain on merchandise sold in its outlet stores and the outlet section of UnderArmour.com.

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The 40-page Under Armour lawsuit claims the retailer has falsely inflated its reference prices for years to entice consumers with fake discounts and trick them into thinking they are purchasing athletic apparel and other merchandise with a higher market value than it truly has. In fact, the Under Armour factory items are “never—or virtually never—offered for sale” at their purported “regular” or “original” prices, the case alleges.

According to the suit, price tags and accompanying placards in Under Armour outlet stores advertise percentage-off discounts from apparent “original” costs. Similarly, on UnderArmour.com/en-us/c/outlet, “sale” prices are listed next to products’ crossed-out “regular” prices, the complaint shares.

However, contrary to the retailer’s representations, consumers are not receiving any discount and are, in truth, paying artificially inflated prices, the filing claims.

“Aware of the intertwined connection between consumers’ buying decision processes and price, retailers like [Under Armour] lure consumers with advertised discounts that promise huge savings and high value,” the suit contends. “But the promised savings are false, and the product’s value reflected in its price is incorrect when the retailer advertises discounts off of some higher, made-up, and artificially inflated ‘original’ price that no one ever pays.”

The lawsuit against Under Armour charges that the company has violated federal pricing regulations, which assert that a product’s advertised former cost must be the bona fide price at which the item was sold “on a regular basis for a reasonably substantial period of time.”

Per the complaint, an investigation by the New York plaintiff’s legal counsel revealed that between 2022 and 2024, “thousands of items remained continuously discounted” in Under Armour outlet stores and online and were never offered for sale at their purported “original” prices.

The lawsuit looks to represent anyone who, while in New York and within the applicable statute of limitations period, purchased from an Under Armour factory store (in-person or online) at least one product at a discount from an advertised reference price and has not received a refund or credit for their purchase.

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