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Kohl’s False Discounts Class Action Lawsuit

This class action alleges that Kohl’s advertized and sold merchandise at prices that it claimed were discounted from “regular” or “original” prices,  but that the supposed “regular” or “original” prices were false or inflated.

The complaint alleges that Kohl’s did not sell the merchandise at the “regular” or “original” prices in meaningful amounts or for meaningful periods of time.

The nationwide class for this class action includes all individuals residing in the United States and its territories who purchased one or more items from Kohl’s advertised at a discount from an original “item price” any time between July 29, 2011 and the present (the “Class Period”). There is also a California subclass.

The complaint alleges that Kohl’s actively touts its “incredible savings” in its public statements; and, it says, to reinforce this impression, at checkout Kohl’s give consumers a sales receipt showing the purported “Item Price” and the actual sales price, along with a “YouSave” notation showing the difference in purported savings between the Item Price and the sales price. The complaint further says that the receipt shows a “Total Saved”; however, it alleges, the “savings” are illusory, and based on false or inflated prices. The complaint claims that the item price” advertised by Kohl’s does not reflect a price at which the products are routinely, if ever, sold to retail customers by Kohl’s, and that the “savings” are therefore fictitious.

In fact, the complaint alleges, Kohl’s website contains these words:

“Sale” prices and percentage savings offered by Kohl’s are discounts from Kohl’s “Regular” or “Original” prices. The “Regular” or “Original” price of an item is the former or future offered price for the item or a comparable item by Kohl’s or another retailer. Actual sales may not have been made at the “Regular” or “Original” prices, and intermediate markdowns may have been taken.

However, the Federal Trade Commission calls such practices deceptive:

One of the most commonly used forms of bargain advertising is to offer a reduction from the advertiser’s own former price for an article. … Where the former price is genuine, the bargain being advertised is a true one. If, on the other hand, the former price being advertised is not bona fide but fictitious—for example, where an artificial, inflated price was established for the purpose of enabling the subsequent offer of a large reduction—the “bargain” being advertised is a false one; the purchaser is not receiving the unusual value he expects.

Both federal and state consumer protection laws prohibit such schemes.

 

 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Customer sues kohl’s alleging false pricing scheme to exaggerate “discounts”

September 30, 2015

Here is the complaint.  It goes into some detail about the false pricing scheme and it appears that some real effort went into the pre-filing analysis.

kohls_complaint.pdf

Case Event History

Customer sues kohl’s alleging false pricing scheme to exaggerate “discounts”

September 30, 2015

Here is the complaint.  It goes into some detail about the false pricing scheme and it appears that some real effort went into the pre-filing analysis.

kohls_complaint.pdf
Tags: Deceptive Advertising, Deceptive Discount Offers