California factory outlets have been accused of deceptive pricing practices, which has sparked a series of fake sale class action lawsuits.
According to the fake sale class action lawsuits, many California factory outlet stores use fake sales to trick customers into spending more money than they might otherwise spend, or misleading them into making purchases at fake sale pricing.
California factory outlet stores such as The North Face have been reported to mark down prices from fictitious ‘original’ or ‘regular’ pricing, so that the sales price is actually the normal price. This means that the customer might get no discount at all, despite the labeling.
Some factory outlet stores even sell clothing that has been deliberately manufactured as lower-quality versions of brand-name clothing, according to fake sales lawsuits.
California factory outlet stores, and outlet stores across the country, use a slew of deceptive tactics to trick customers into buying and spending more.
In the past few decades, retailers have begun to use the popularity of factory outlet stores to create an industry almost entirely separate from regular retail business. Across the United States, there are more than 13,000 outlet stores. These stores are a huge draw for tourists as well as locals often located far away from cities. Initially, this was done for monetary purposes.
However, factory outlet stores soon realized that when customers had to drive a long ways to get to outlet malls, they would decide to make a day of it. Instead of buying one or two things, as one might do if they stopped by a store on the way home, customers instead feel like they need to make the day worth it and come away with a real haul of items.
While factory outlet stores are often known for stocking items that were the main store’s last season, damaged, or overstock items, factory outlet stores often have entirely separate products in stock at their outlets.
According to an outlet buyer for a New York department store, “I would guess that only about 10-15 percent of our outlet’s stock was actually items that the main store carried. The rest of it was merchandise we bought or produced for the outlets – and truth be told, the main store would not find its quality worthy of the brand.”
To differentiate the products between main store and outlet, the buyer said, “we even use different labels for outlet merchandise so that distinction is there.”
Some retailers use lower quality construction or fabrics for their outlet-only products, yet market those products as if they were high, quality, 100 percent natural fabric.
While not all factory outlet store price tags are fake, because some of the products are taken from the main store, a high percentage of outlet store items have fake prices featured on their price tags. In some cases, a shirt marketed as having been originally $250 is selling for $50 at an outlet store, but was bought for around $20.
Using these kinds of tactics, California factory outlet stores and other outlets across the country have become a $17 billion industry.
Perhaps the best way to avoid being duped by fake sales in outlet stores is to consider the selling price, the quality of the item, and nothing else. If, when weighing these two factors, the item is not worth it – despite being (maybe) a great discount – then it is probably best to walk away.
California Factory Outlet Stores
Class action lawyers are investigating allegations about certain California outlets that may be using deceptive practices and fake sales to boost their profits at their customers’ expense.
Retailers being investigated include The North Face Outlet stores, as well as other California outlet stores.
By advertising fake sale prices, these retailers are allegedly engaging in deceptive pricing policies as well as violating both federal and California laws.
The state of California requires that retailers sell an item for the “prevailing market price” for three months before it can be sold at a discount.
If you purchased an item that was on sale at The North Face Outlet or another outlet store, you may be able to file a fake sale lawsuit.
Join a Free California Factory Outlet Store Class Action Lawsuit Investigation
If you purchased clothing from a discount retailer or factory outlet store in California in the last two years, you may be the victim of a false advertising scheme. Some of the retailers being investigated in the potential false advertising class action lawsuit include:
- Barney’s New York Outlet
- Coach Outlet
- Cole Haan Outlet
- Levi’s Outlet
- Nike Outlet
- Northface Outlet
- True Religion Outlet
- Vince Outlet
- Other California outlet stores
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