Skip to content
Search AI Powered

Latest Stories

When Is a Sale Not a Sale? Los Angeles City Attorney Sues Retailers Over False Reference Pricing

When Is a Sale Not a Sale? Los Angeles City Attorney Sues Retailers Over False Reference Pricing

The Los Angeles city attorney is suing four major retailers over falsely inflated “original” prices on discounted items.

[DIGEST:  CNN, Consumerist, LA Times, Los Angeles City Attorney]

For shoppers who have ever thought a sale seemed too good to be true, California officials are providing some vindication.


The Los Angeles City Attorney’s Office is suing JC Penney, Kohl’s, Macy’s and Sears over claims the retailers falsely inflated the original price on some items to trick customers into thinking they were buying goods at a deep discount.

The lawsuit, filed in December, claims the defendants effectively took away consumers’ ability to make informed purchasing decisions. False reference pricing as a competitive retail tactic plays “a major role in the companies’ overall marketing and business strategies,” said the L.A. City Attorney’s Office.

For example, the lawsuit against Sears alleges that in April 2016, Sears advertised a sale on a Kenmore front-load washing machine with a “regular” price of $1,179.99. However, the suit alleges the washer was never offered for sale for more than $999.99 in the six months after it was first made available.

The suit against Macy’s alleges that in May 2016, the store advertised a silver cross for $30—purportedly 75 percent off the “regular” price of $120. However, according to the claim, Macy’s never actually offered the item for sale for more than $30.

It’s against the law in California to advertise a “former” price of an item unless that price was in effect within the last three months or the advertisement clearly states the date when the item was sold at that price.

This is not the first time consumers have taken retailers to court over misleading sales prices. In December of 2015, two shoppers, one in California and one in Florida, filed a class-action lawsuit against Macy’s and Bloomingdale’s, alleging the retailers falsely inflated the original prices of sale items, enticing them to purchase an item that they thought was heavily discounted.

“In some instances, [Macy’s or Bloomingdale’s] represented that the listed or original price was two or more times the manufacturer’s suggested retail price (“MSRP”), and then offered the item at a purported 50 percent or more discount price which was in fact the original MSRP,” reads the lawsuit.

Kohl’s and TJ Maxx also spurred two different 2015 class-action lawsuits by shoppers; the former alleged Kohl’s’ “regular” prices on labels like Mudd, Sonoma, and Jennifer Lopez are fictitious since the brands are only sold in-house, while the latter claimed false reference pricing.

“Kohl’s was aware that consumers are motivated by information concerning a product’s worth and the prestige that ownership of the product conveys,” reads the 2015 complaint against Kohl’s. “Kohl’s knew that, as discount size increases, consumers’ perceptions of value and their willingness to buy the product increases.”

The Los Angeles City Attorney’s office hopes this current lawsuit will be the last.

"Customers have the right to be told the truth about the prices they're paying—and to know if a bargain is really a bargain," said Mike Feuer, city attorney for Los Angeles. “My office will fight to hold retailers responsible for their practices and to ensure consumers can make informed choices when spending their hard-earned money.”

More from News

Karoline Leavitt
Win McNamee/Getty Images

Karoline Leavitt Slammed After Suggesting Reports Of Deadly Strike On Iranian Girls' School Are Just 'Propaganda'

White House Press Secretary Karoline Leavitt was criticized after she rejected reports that the U.S. struck a girls' elementary school in Iran, killing 175 people, insisting in remarks to the press pool that it's just Iranian "propaganda" that they've "fallen" for.

Iranian state media and health officials said the strike occurred early Saturday morning in Minab, in the country’s southern Hormozgan Province. Journalists from international news organizations have not been granted access to independently verify the reported death toll or the circumstances surrounding the strike.

Keep ReadingShow less
Screenshots from @madswellness's TikTok video
@madswellness/TikTok

Woman Sparks Debate With Her Viral Hot Take That We Should 'Normalize Not Liking Dogs'

We're all different people with different interests, and it's perfectly okay that we like different things.

But there are some people who passionately, even vehemently, draw the line at other people liking or disliking dogs.

Keep ReadingShow less
Screenshots from @vanellimelli030's TikTok video
@vanellimelli030/TikTok

Model Accuses Fashion Brand Of Using AI To Recreate Her Looks For Ad Instead Of Hiring Her

There used to be laws in place for someone's likeness being used without their consent, and most certainly if their likeness was being used in an exploitative way for profit.

But now with the rise of AI-generated photographs, advertisements, and other digital products, the lines seem to have become muddied between the illegal stealing of someone's likeness and AI "inspiration."

Keep ReadingShow less
Screenshots from @anissahm15's TikTok video
@anissahm15/TikTok

TikToker Secretly Records Unhinged Spectrum Employee Screaming At Her For Trying To Cancel Her Service

Employees in commission-based positions are feeling increasingly pressured to acquire new clients, retain previous clients, and solve the issues their clients call in about with high satisfaction ratings.

Even though tensions are high, and the pressure they're feeling may be unrealistic for any one person to take, that doesn't give them the right to mistreat people who do not want to sign up or want to cancel.

Keep ReadingShow less
Screenshots from @hustleb***h's TikTok video
@hustleb***h/TikTok

Travel Influencer Posts Viral 'Hack' Using Hotel Coffee Maker To Wash Her Underwear—And We're Horrified

We've all worried about packing enough clothes when we go on a trip, especially when it's the really important stuff, like underwear and socks.

But travel influencer @tarawoodcox11 thoroughly grossed out the internet when she shared a hack for maintaining clean, or at least cleaner underwear, while on the go. The video was later shared by the TikTok platform @hustleb*tch where it went viral.

Keep ReadingShow less