Every savvy shopper loves a sale. The problem, however, is when shoppers are duped into believing they are getting a discount on merchandise when in fact they aren’t.
Complaints have arisen about retailers allegedly misleadingly promoting an item as being “on sale” when in fact the item’s discount is built into the price of the product before it goes on the shelf. This is also known as a fake sale.
Shoppers Beware
Many retailers, like the ever-popular retail giant Target, are being investigated for marking up prices on their merchandise and then tricking shoppers into buying the items at a discounted price, often considered fake sales.
One investigative study conducted by Consumers’ Checkbook found that Target and other well-known stores used deceptive or fake sale pricing.
Over the course of 44 weeks, the investigation tracked seven major stores online once a week on six to 10 items at each store.
According to Consumers’ Checkbook some of the items were offered at sales prices for the entire duration of the investigation. It was reported that Target’s items were advertised at sale prices up to 47 percent of the time.
Another way retailers lure customers is to advertise an item as being on sale, but then charging the customer a higher price than the list price. But consumers are fighting back.
In one example in February 2015, Target paid $3.94 million to settle a fake sale class action lawsuit brought by six California counties, claiming Target charged customers prices that were higher than their listed prices.
According to a Target spokesperson, the pricing errors were primarily caused by promotional signs that were not removed immediately after the promotion ended, leading customers to be charged a higher price than what they had seen listed.
However, California’ strict deceptive pricing laws prohibit retailers from charging even a fraction of a penny over the lowest price posted on the item or its shelf, even if by mistake.
Fake Sale Laws
The Federal Trade Commission (FTC) and each state has laws to prevent retailers from a fake sale. These FTC guidelines state that the regular price has to have been offered to the public on a regular basis for a reasonably substantial period of time. Essentially, the rule is that a retailer or business cannot inflate a price to promote a sale.
Additionally, pursuant to California Business & Professions Code, a retailer may only list a “former” price if that price was the “prevailing price” for the previous three months, or if it conspicuously lists the last time the item was sold at the listed original price.
Deceptive Pricing Lawsuits
Consumers are taking action and challenging the deceptive sale pricing practices of retailers by filing fake sale lawsuits. These fake sale lawsuits allege that the supposed retail prices are non-existent and are designed to make the shopper think they are getting a discount when in fact they are not.
Advertising merchandise as on sale when it is never sold at the “original” or “MSRP” price or charging more than the list price is against the law. If you purchased falsely marked merchandise at a California retailer, you may have a legal claim.
Join a Fake Sale Class Action Lawsuit Investigation
If you purchased an item on sale at one of the following retailers in California, you may qualify to join a free class action lawsuit investigation:
- Best Buy
- Macy’s
- Target
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