Retailers continuing to allegedly engage in deceptive advertising at outlets

Posted on: November 12th, 2014 by Steve Larson
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Neiman-MarcusA class action lawsuit has been filed against Neiman Marcus, Ltd.. in California Superior Court for allegedly misleading customers about discounts at the company’s Last Call outlet stores.  Specifically, the complaint alleges that Last Call price tags falsely suggest that the items were sold at Neiman Marcus’ flagship stores, but many Last Call clothing items were never sold at Neiman Marcus retail stores and are of lesser quality.

The lawsuit centers on the “compared to” prices posted which highlights the difference between the reduced sales prices of an item at Last Call against the purported price that the same item sold for at Neiman Marcus flagship stores.  Since certain items were never sold in Neiman Marcus, the compared to price is allegedly fabricated and, consequently, the perceived discount customers are receiving by purchasing items at Last Call is misleading.

The lawsuit seeks monetary damages along with a permanent injunction to preclude Neiman Marcus from continuing to employ the allegedly misleading sales practices.  A similar lawsuit which focused on outlet store price misrepresentations was filed against Michael Kors in July 2014.