Four major retailers namely Macy’s Kohl’s, Sears, and JCPenney will be involved in a lawsuit filed by the Los Angeles city attorney, Mike Feuer.
Mike Feuer, the city of angels attorney, went to release a statement on the matter. According to him, customers deserve to be told the truth in relation to the prices they are paying.
Feuer’s declarations, as well as the impending lawsuit, are targeting four major retailers. The four are accused on claims of deliberately inflating the original sale prices of some items.
As such, the potential customers could have been misled into thinking they were making a better deal. On these claims, Feuer will be filing lawsuits against Macy’s, Kohl’s, Sears, and JCPenney.
According to the initial statements, the lawsuit will claim the following. The retailers are accused of using a deceptive and misleading advertising scheme involving false pricings.
The scheme would have played a major role in the marketing strategies of the respective companies. Also, the aforementioned four major retailers have reportedly used the scheme on “thousands” of products.
Initial statements about the lawsuit offer examples for each of the involved retailers. For example, Sears is accused of advertising a $1,179.99 front-load washer. The said value is considered a false original price as the retailer had a maximum online price of $999.99.
Macy’s is targeted for offering an alleged 75 percent discount for a cross pendant necklace. The retailer is thought to have offered a misleading initial price of $120. As the item was initially listed in May for the said price, it was sold at a promotional sum of $30.
However, over the next five months, the item continued to be sold at the same $30 value, according to the lawsuit claim.
California-state laws forbid retailers from advertising a product price if the respective item has not been sold at that value within the latest three months. To put it more simply, a product cannot be advertised as costing a specific price and never be sold at the respective value.
Retailers would also have to specify to the shoppers the date or period on which the respective product was sold at that value.
As such, Feuer, the city attorney will be seeking injunctions over the alleged false price advertising. The four major retailers have reportedly used the false reference prices tactic more than once.
The lawsuit will also be seeking a civil penalty which could come to about $2,500 for each product violation.
Lawsuit claims state that an inflated original product price could be misleading for the prospective consumer.
Their acquisition behavior could be changed by such an inflated reference as it would offer a false perception on the value of the sale.
Currently, neither of the four major retailers has released an official statement in regards to the pending litigation.
For the moment, Macy’s, Kohl’s, Sears, and JCPenney seem to have declined to comment on the matter.
The lawsuit, besides the injunctions, will seek to put a stop to the alleged false reference pricing strategies.
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