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Burlington Coat Factory Fake Discounts Class Action Lawsuit

Mega-retailer Burlington Coat Factory is the target of a class action lawsuit that accuses the corporation of false advertising and fraudulent business practices. The suit was filed in a California court by plaintiffs James Horonsby and Jennifer Price. Both claim they were misled by Burlington Coat Factory’s marketing tactics, which allegedly promote false and/or misleading comparative prices, and thus untrue savings and discounts for its customers on its apparel and merchandise.

Burlington Coat Factory was founded in 1972 as a single coat and jacket wholesale outlet in New Jersey. The company rapidly expanded and now boasts over 540 stores across the United States that sell clothing, furniture, gifts, and home d├ęcor. Burlington Coat Factory is known as an “off-price” retailer. This means the stores receive the excess inventory of department stores and designers at a greatly reduced price, to be sold to the public at a significant discount than they would see elsewhere. Burlington Coat Factory touts the savings it offers consumers with comparative pricing advertisements in stores, in print, and online.

The plaintiffs in the suit contend they purchased apparel and merchandise at Burlington Coat Factory locations in California that were comparatively advertised as discounted from other vendors, but in fact were not. Burlington Coat Factory tags individual merchandise with labels that read Our Low Price contrasted with a higher price that says, Compare. However, the higher Compare price was not actually what other prevailing vendors were selling the product for, leading the plaintiffs to believe they were receiving a greater discount for purchasing their merchandise at Burlington Coat Factory. This misleading practice is routine and systematic at the stores in which the class members shopped, the lawsuit alleges.

Laws dictated by the Federal Trade Commission prohibit deceptive pricing, and practices by vendors that falsely tout discounted costs on retail products when they are being sold at a predominant and usual amount of money. California consumer protection laws also ban fraudulent and misleading business practices and false advertising.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Complaint Alleges False Discounts at Burlington Coat Factory

July 1, 2015

The complaint for this class action accuses mega-retailer Burlington Coat Factory of advertising false and/or misleading comparative prices and thus false discounts on its apparel and merchandise.

burlington_coat_complaint.pdf

Case Event History

Complaint Alleges False Discounts at Burlington Coat Factory

July 1, 2015

The complaint for this class action accuses mega-retailer Burlington Coat Factory of advertising false and/or misleading comparative prices and thus false discounts on its apparel and merchandise.

burlington_coat_complaint.pdf
Tags: Deceptive Advertising, Deceptive Discount Offers