Outlet Store Pricing Litigation

Tycko & Zavareei LLP has filed lawsuits against high-end clothing stores—including Nordstrom—for their deceptive pricing practices at their company-owned outlet, factory, or stores.  These retailers misrepresent the existence, nature, and amount of price discounts on products manufactured exclusively for outlet stores.

According to allegations in the complaints, the price tags at these outlet stores bear a higher reference price – sometimes a Manufacturer’s Suggested Retail Price (“MSRP”), “Compare At” value, or “Our Price” designation — that does not represent a bona fide price at which designers formerly sold the product.  While touting a false original price, retailers then offer, on the same price tag, a lower price which supposedly represents a deep discount.

Many consumers, including Plaintiffs in these cases, believe that they are purchasing high quality, name-brand products at a reduced price when they shop at these stores. In fact, products at these stores were made exclusively for the outlet; they are lower quality goods that were never offered or sold as genuine quality designer products.  This fictitious pricing scheme is expressly prohibited by California statutory and regulatory law.

Tycko & Zavareei continues to litigate this matter in order to create greater pricing transparency for consumers. If you would like to learn more about this ongoing case, please do not hesitate to contact us.