Hard core shoppers love scouring department store racks in hopes of finding a fashion bargain. The thrill of finding that perfect garment and discovering that the “original” has been heavily discounted to a “sale” price elicits delight for many consumers. Retailers know that often translates into sales. But, in recent years, consumers have grown skeptical about the legitimacy of “original” prices on these comparative price tags, and some even file class-action lawsuits against large-scale retailers. In these lawsuits, consumers argue that retailers deceptively inflate the “original” price, or display “original” prices at which the goods were never sold, resulting in duped consumers. Even if these lawsuits don’t make it to court, they frequently result in substantial monetary settlements in favor of plaintiffs and their attorneys.

Pricing Practices

There are several points to consider when analyzing the pricing practices of retailers and lawsuits that sometimes follow. First, retailers continue to employ comparative pricing tactics even though such practices are widely known to result in class actions because “compare to” and “originally sold for” techniques obviously connect with consumers and generate revenues. Perhaps retailers even consciously factor in the risk of lawsuits and settlement when adopting these strategies. Alternatively, some retailers are sufficiently confident that their pricing methods do not rise to the requisite level of deception capable of supporting a deceptive pricing lawsuit. Either way, the practice has not been deterred and deceptive pricing litigation is showing no signs of abating.