Click Fraud Protection Over $9 Million Recovered for Consumers in Outlet Stores False Advertising Class Actions - Tycko & Zavareei LLP
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HomeSuccessesOver $9 Million Recovered for Consumers in Outlet Stores False Advertising Class Actions

Over $9 Million Recovered for Consumers in Outlet Stores False Advertising Class Actions

Outcome: Settlements Resulting in Over $9 Million Settlement Funds and Changed Practices

  • Gattinella, et al. v. Michael Kors, Inc., et al., Case No.: 14 Civ. 5731 (WHP) in the United States District Court for the Southern District of New York
  • Stathakos v. Columbia Sportswear Company, Case No.: 4:15-cv-04543-YGR in the United States District Court for the Northern District of California
  • Marino, et al. v. Coach, Inc., Case No.: 1:16-cv-01122-VEC (OTW) in the United States District Court in the Southern District of New York

Many savvy shoppers go to outlet stores to find deals on overstocked or damaged items that have been marked down from their original price. However, according to three lawsuits litigated by Tycko & Zavareei LLP, some stores manufacture merchandise specifically to sell at outlet stores and mark tags with an invented original price to convince customers that they’re getting a good deal.

In 2014 and 2015, Tycko & Zavareei LLP filed lawsuits against Michael Kors, Coach, and Columbia Sportswear alleging that both companies labelled merchandise with fictitious original prices to decieve customers into believing that they were getting a discount. Columbia Outlets showed a “Reference Price” on price tags, while Kors Outlets and Coach outlets listed a Manufacturer’s Suggested Retail Price (MSRP or MFSRP). The plaintiffs of the three lawsuits believed that Michael Kors, Coach, and Columbia had formerly sold items at the higher MSRP, MFSRP, or Reference Price in non-outlet stores and had lowered the price for sale at the outlet. At the very least, they expected that the higher price was the prevailing market retail price of the item within the past three months as required by California law. However, the lawsuits alleged that many items had never been sold at the higher price in non-outlet stores—in fact, many items had never been sold in non-outlet stores at all.

TZ negotiated settlements with Michael Kors, Coach, and Columbia Sportswear to compensate customers who were misled by false original prices at these companies’ outlet stores. Some customers were eligible for settlement payments or vouchers, while all customers benefitted from the stores changing their signage to be clear about items’ pricing. With these cases, Tycko & Zavareei LLP fought for truth in advertising and helped prevent customers from being misled by deceptive marketing practices in the future.

 

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