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Nordstrom Rack Stores False Discount Class Action

This class action alleges that Nordstrom Rack stores in California violate state laws by offering goods at prices they claim are “discounts” to regular retail prices, when in fact the goods were never offered for sale at those prices.

Nordstrom is an upscale American retailer that sells clothing, shoes, and other items. The Nordstrom Rack website describes Nordstrom Rack as “the offprice retail division of Nordstrom Inc.”

Tags on items sold at Nordstrom Rack may show two prices. The “Compare At” price is purported to be the original price at which the product was offered. Below that is the current price, with the percentage of discount from the Compare At price. The plaintiff alleges that customers therefore have the impression that they are buying items that were formerly for sale in Nordstrom’s main line stores, and that they are getting a bargain in proportion to discount shown.

However, the plaintiff alleges, many of the items in Nordstrom Rack stores were never offered for sale in Nordstrom’s main line stores or at the Compare At price. In fact, the plaintiff claims that some of the items were made exclusively for sale at Nordstrom Rack and other outlets. He claims that these products were always intended to be sold at lower prices and that they were typically of lower quality than the products in Nordstrom’s main line stores.

Federal regulations say this about items offered at reduced prices: “If the former price is the actual, bona fide price at which the article was offered … the bargain being advertised is a true one. If, on the other hand, the former price being advertised is not bona fide but fictitious … the “bargain” being advertised is a false one; the purchaser is not receiving the unusual value he expects.”

California also prohibits “discounts” based on false former prices. In addition, it requires that the former price be the prevailing market price in the preceding three months.

The plaintiff therefore alleges that Nordstrom Rack has violated federal and California consumer protection laws.

Article Type: Lawsuit
Topic: Consumer
No case events.
Tags: Deceptive Advertising, Deceptive Discount Offers