Compliance » Big Retailers Hit With Deceptive Pricing Lawsuits

Big Retailers Hit With Deceptive Pricing Lawsuits

December 19, 2016

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The unofficial term is “false reference pricing,” and it involves variations on the theme of advertising a price said to be reduced from some norm or reference price which proves to be dubious or non-existent. Earlier this month the district attorney of Los Angeles, using California consumer laws, filed four lawsuits alleging such a practice by some of the largest retailers in the United States. The complaints are seeking penalties of $2,500 for each violation, based on the advertising of thousands of products. “Retailers should take note,” says this legal update from Perkins Coie, “that the lawsuits set forth specific sales data gathered over several months – meaning regulators (and plaintiff attorneys) are keeping a careful eye on retail sales pricing.” This scrutiny, the attorneys note, extends to online advertising, which is far easier for regulators and plaintiff lawyers to monitor because they don’t have to leave their office to do it. This post provides some basic advice for retailers who want to mitigate the risk of being named in one of these lawsuits.

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