Major Clothing Retailer Class Action Alleges Deceptive Advertising
Macy's & Bloomingdale's Called Into Question for Deceptive Advertising
By Tamara Burns
Macy’s and Bloomingdales are facing another lawsuit with similar allegations.
Plaintiffs Job Carder and Erica Vinci filed a proposed class action lawsuit against Macy’s, and its divisions Macy’s West and Bloomingdale’s, alleging that the department stores engage in so-called “fake sales.”
The plaintiffs claim that the companies prices were “artificially inflated and arbitrary and did not represent a bona fide price at which they previously sold such products or the prevailing market price for such items.”
The lawsuit went on to say, “Defendants then offered, on the same sales labels or tags or on signs above the merchandise, to sell the items for a reduced or discounted price, which supposedly represented a significant discount off of the false original, regular or compare at price.”
The Federal Trade Commission has specifically spoken out against deceptive pricing practices such as those employed by Macy’s and Bloomingdale’s, the class action lawsuit claims.
The plaintiffs quote the FTC guidelines as stating, “It bears repeating that the manufacturer, distributor or retailer must in every case act honestly and in good faith in advertising a list price, and not with the intention of establishing a basis, or creating an instrumentality, for a deceptive comparison in any local or other trade area.”
“Through their false and deceptive marketing, advertising and pricing scheme, Defendants violated and continue to violate laws prohibiting advertising goods for sale as discounted from former prices which are false, and prohibiting misleading statements about the existence and amount of price reductions,” the lawsuit states.
The plaintiffs seek to represent a Class of California consumers who purchased items from Macy’s, Macy’s West or Bloomingdale’s “where the price paid was at a sale or discount to the original, regular or compare at price listed on the tag for that item and such individuals have not received a refund or credit for such purchases.”
The proposed class action lawsuit brings forth five counts against the Defendants including unfair business practices, fraudulent business practices, unlawful business practices, false advertising and violation of California’s Consumer Legal Remedies Act.
In addition to seeking class certification, the plaintiffs are also asking for restitution including disgorgement of profits and an order enjoining the defendants from continuing their alleged violations of the law.
Read full article and learn more about Deceptive Advertising here.
Here’s How To Make Sure You,
Your Business & Website Is FTC Compliant
By now it should be clear how important it is for you to be FTC compliant. But how can you do that without spending $7,500-$8,000 or more on Internet Attorneys?
Smart business owners around the world are doing it with the help of FTC Guardian.
FTC Guardian is a service that is 100% focused on helping to keep you get and stay FTC compliant and fully protected. And right now, we are offering a free training to give you the knowledge, information, and guidance that you need to stay out of trouble with the Federal Trade Commission.
Here are some of the things you’ll discover on the training:
- Real-Life Examples of People Who Didn’t Think They Were At Risk, But Who Got Nailed By The FTC, And Why It Could Happen To You, Too
- Why 2014 Was a Significant Year For Online Businesses, And Why You Should Be Worried!
- The 3 Enormous Powers The FTC Has That Can Change Your Life – And Your Family’s Life – Forever!
- How to Avoid FTC Claims When Collecting Leads With Optin Forms
- And Much More…
Remember: legal protection is a massively important part of your business, and it’s one you cannot afford to ignore any longer.
Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.