×
6 712
Fashion Jobs
HARVEY NICHOLS KNIGHTSBRIDGE
Collect in Store Consultant
Permanent · LONDON
FRASERS GROUP
HR Systems Administrator
Permanent · SHIREBROOK
FRASERS GROUP
Site SEO Manager
Permanent · STRETFORD
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, Stratford (Westfield)
Permanent · London
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, White City London (Westfield)
Permanent · London
SELFRIDGES
Tech Business Analyst - Customer & Omni
Permanent · LONDON
NEXT
Sales Manager - Coventry Arena RP
Permanent · COVENTRY
EVERLAST GYMS
Assistant General Manager - Everlast Fitness
Permanent · SELBY
EVERLAST GYMS
Assistant General Manager - Everlast Fitness
Permanent · EPSOM
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent · SALE
EVERLAST GYMS
Assistant General Manager - Everlast Fitness
Permanent · DENTON
FRASERS GROUP
Warehouse Section Manager - Night Shift
Permanent · SHIREBROOK
VIVIENNE WESTWOOD
PA to Creative Director
Permanent · LONDON
DR. MARTENS
eu HR Administrator - French And/or German Speaking
Permanent · LONDON
HARRODS
Cleaning Operative- Day or Night
Permanent · LONDON
HARRODS
Uniform Security Officer (Cctv Operator)
Permanent · LONDON
FLANNELS
Beauty Brand Manager - Pat Mcgarth
Permanent · BELFAST
HUGO BOSS UK LTD.
Sales Executive - Shoes & Accessories + Bodywear & Hosiery
Permanent ·
HUGO BOSS UK LTD.
Womenswear Sales Manager
Permanent ·
HUGO BOSS UK LTD.
Ecommerce Marketplace Manager Northern Hub
Permanent ·
HUGO BOSS UK LTD.
Finance Manager (Maternity Contract)
Permanent ·
HUGO BOSS UK LTD.
Sales Executive Boss Menswear
Permanent ·
Ads
By
Reuters
Published
May 20, 2015
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Judge certifies class action over J.C. Penney phantom discounts

By
Reuters
Published
May 20, 2015

A federal judge certified a class-action lawsuit that accuses J.C. Penney Company Inc of marking up retail prices on apparel and accessories to trick shoppers into believing they were getting big discounts when the items were advertised on sale.

In a decision on Monday, U.S. District Judge Fernando Olguin in Los Angeles said it was possible "in one stroke" to determine whether J.C. Penney's advertising practices caused shoppers in California to buy items at discounts that proved illusory.

The complaint accused the company of running a "massive, years-long, pervasive campaign" to deceive shoppers about its pricing for private-label brands, and for outside brands such as Liz Claiborne, sold exclusively by the retailer.

Lead plaintiff Cynthia Spann said she discovered this after buying three blouses for $17.99 each, a 40 percent discount from the "original" $30 price, only to learn the price was never above $17.99 in the prior three months.

By letting shoppers sue as a group, the decision could help them obtain greater compensation at lower cost from the Plano, Texas-based retailer than if they sued individually.

"We're thrilled with the decision," said Matthew Zevin, a lawyer for the plaintiff class, which he said could number hundreds of thousands. "Price comparisons are not illegal, but it is deceptive if there is no basis for the original price."

J.C. Penney spokeswoman Kate Coultas said the retailer does not discuss pending litigation.

Similar lawsuits have been filed against retailers such as Kohls Corp and Men's Wearhouse Inc's Jos. A. Bank unit.

Olguin certified a class of plaintiffs who bought private-label or exclusive items from J.C. Penney in California from Nov. 5, 2010 to Jan. 31, 2012 at discounts of 30 percent or more. These shoppers accused the retailer of violating state consumer protection laws.

The Federal Trade Commission has said retailers are supposed to sell items at original prices for a "reasonable length of time" before marking them down if they wish later to provide the original prices to consumers who compare prices.

J.C. Penney moved away from discounts in 2012, when Chief Executive Officer Ron Johnson adopted a strategy of "fair and square" everyday low pricing.
It resumed discounting after sales plunged, a decline that contributed to Johnson's ouster the following year.

© Thomson Reuters 2022 All rights reserved.