J Crew Hit With Class Action over Online Factory Store Prices
What’s the News?
J Crew Group Inc. was recently hit with a nationwide class action lawsuit alleging that the clothing retailer offers fictitious sales on the J Crew Factory store website. According to the complaint, while items throughout the site are offered at “sale” prices, they are never actually sold at the higher “valued at” price listed to advertise potential savings. Asserting that the company’s pricing strategy violates dozens of state consumer protection laws, the complaint seeks compensatory and punitive damages, as well as injunctive relief. This is the most recent case in a litany of class actions attacking allegedly “phantom” sale prices. It serves as an important reminder to retailers nationwide to be careful when advertising sale prices and when using price comparisons.
*This alert was originally posted on Arent Fox's Fashion Counsel blog. To read this alert in its entirety, please click here.