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Saks OFF 5th Outlets Class Action Alleges Deceptive “Discount” Pricing

This lawsuit alleges that Saks OFF 5TH fashion outlets, operated by Saks Incorporated, misleadingly advertised false comparative prices and price discounts for merchandise sold at its stores and on its website, in violation of the California Business and Consumer Codes and the Federal Trade Commission Act.

New York based Saks Incorporated (Saks), acquired by Toronto based Hudson’s Bay Company (TSX: HBC) in 2013, operates Saks Fifth Avenue OFF 5TH stores and the saksoff5th.com website, and advertises, markets, distributes, and/or sells clothing and clothing accessories in California and throughout the United States.

California resident Randy Nunez purchased a pair of Saks Fifth Avenue branded shoes for approximately $86.39 on July 15, 2015 at a Saks Fifth Avenue OFF 5TH retail store located in San Diego. The shoes were advertised as originally having a “market price” of $145.00. That price was crossed out and represented to Nunez as: “You Pay: $79.99,” a purported “44% Savings” according to the price tag.  Nunez purchased the shoes at the advertised price in reliance on the Saks advertising, marketing and “discount” pricing scheme.  He would not have made the purchase but for Saks’ representations of the original “market” price and the described discount.

On December 3, 2015, Nunez filed a class action complaint (U.S. District Court District of California), on behalf of himself and similarly situated individuals, alleging that Saks had a pattern and practice of false and misleading advertisement of “market” prices, and corresponding phantom “savings” on clothing, shoes, and fashion apparel sold in its retail stores and/or on its Internet website. The complaint states the shoes he purchased were never offered for sale at $145.00 at the Saks OFF 5TH retail store, nor was it offered at that price within the 90-day time period immediately preceding his purchase, as required by California law.

According to the complaint, the “market price” advertised for the shoes Nunez purchased the never existed and/or did not constitute the prevailing market retail prices for such products within the three months next immediately preceding the publication of the sales tag.  When Saks sells its own, exclusive, “Saks” branded products, there is no other “market price” for the products being sold other than the price set at the stores.  Nunez claims the difference between the “sale” and “regular” prices is a false savings percentage used to lure consumers into purchasing products they believe are significantly discounted.

The complaint alleges Saks advertised goods for sale as discounted from former prices which were false and made misleading statements about the existence and amount of price reductions, in violation of the California Business & Professions Code, the California Consumers Legal Remedies Act and the Federal Trade Commission Act (prohibiting “unfair or deceptive acts or practices in or affecting commerce” (15 U.S.C. §45(a)(1)) and false advertisements (15 U.S.C. §52(a)).

Class certification is requested for all persons who, while in the State of California and during the applicable statutes of limitations, purchased a Saks or Saks Fifth Avenue branded product at discount from the advertised “market” price.  The complaint seeks damages, restitution, disgorgement of profits and attorneys’ fees and costs.  

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Saks OFF 5th Outlets Complaint Alleges Deceptive “Discount” Pricing

December 3, 2015

This lawsuit alleges that Saks Off 5th fashion outlets, operated by Saks Incorporated, misleadingly advertised false comparative prices and price discounts for merchandise sold at its stores and on its website, in violation of the California Business and Consumer Codes and the Federal Trade Commission Act.

saks_phantom_markdown_complaint.pdf

Case Event History

Saks OFF 5th Outlets Complaint Alleges Deceptive “Discount” Pricing

December 3, 2015

This lawsuit alleges that Saks Off 5th fashion outlets, operated by Saks Incorporated, misleadingly advertised false comparative prices and price discounts for merchandise sold at its stores and on its website, in violation of the California Business and Consumer Codes and the Federal Trade Commission Act.

saks_phantom_markdown_complaint.pdf
Tags: Deceptive Advertising, Deceptive Discount Offers