Skip to content
Search AI Powered

Latest Stories

When Is a Sale Not a Sale? Los Angeles City Attorney Sues Retailers Over False Reference Pricing

When Is a Sale Not a Sale? Los Angeles City Attorney Sues Retailers Over False Reference Pricing

The Los Angeles city attorney is suing four major retailers over falsely inflated “original” prices on discounted items.

Make us preferred on Google

[DIGEST:  CNN, Consumerist, LA Times, Los Angeles City Attorney]

For shoppers who have ever thought a sale seemed too good to be true, California officials are providing some vindication.


The Los Angeles City Attorney’s Office is suing JC Penney, Kohl’s, Macy’s and Sears over claims the retailers falsely inflated the original price on some items to trick customers into thinking they were buying goods at a deep discount.

The lawsuit, filed in December, claims the defendants effectively took away consumers’ ability to make informed purchasing decisions. False reference pricing as a competitive retail tactic plays “a major role in the companies’ overall marketing and business strategies,” said the L.A. City Attorney’s Office.

For example, the lawsuit against Sears alleges that in April 2016, Sears advertised a sale on a Kenmore front-load washing machine with a “regular” price of $1,179.99. However, the suit alleges the washer was never offered for sale for more than $999.99 in the six months after it was first made available.

The suit against Macy’s alleges that in May 2016, the store advertised a silver cross for $30—purportedly 75 percent off the “regular” price of $120. However, according to the claim, Macy’s never actually offered the item for sale for more than $30.

It’s against the law in California to advertise a “former” price of an item unless that price was in effect within the last three months or the advertisement clearly states the date when the item was sold at that price.

This is not the first time consumers have taken retailers to court over misleading sales prices. In December of 2015, two shoppers, one in California and one in Florida, filed a class-action lawsuit against Macy’s and Bloomingdale’s, alleging the retailers falsely inflated the original prices of sale items, enticing them to purchase an item that they thought was heavily discounted.

“In some instances, [Macy’s or Bloomingdale’s] represented that the listed or original price was two or more times the manufacturer’s suggested retail price (“MSRP”), and then offered the item at a purported 50 percent or more discount price which was in fact the original MSRP,” reads the lawsuit.

Kohl’s and TJ Maxx also spurred two different 2015 class-action lawsuits by shoppers; the former alleged Kohl’s’ “regular” prices on labels like Mudd, Sonoma, and Jennifer Lopez are fictitious since the brands are only sold in-house, while the latter claimed false reference pricing.

“Kohl’s was aware that consumers are motivated by information concerning a product’s worth and the prestige that ownership of the product conveys,” reads the 2015 complaint against Kohl’s. “Kohl’s knew that, as discount size increases, consumers’ perceptions of value and their willingness to buy the product increases.”

The Los Angeles City Attorney’s office hopes this current lawsuit will be the last.

"Customers have the right to be told the truth about the prices they're paying—and to know if a bargain is really a bargain," said Mike Feuer, city attorney for Los Angeles. “My office will fight to hold retailers responsible for their practices and to ensure consumers can make informed choices when spending their hard-earned money.”

More from News

Pete Hegseth
Jim Watson/AFP via Getty Images

Pete Hegseth's Past Comments About Hygiene Resurface After He's Caught On Video Running His Snotty Hands Through His Hair

Remarks about not having washed his hands "in 10 years" resurfaced after Defense Secretary Pete Hegseth was caught on video wiping his nose with his hands before immediately running those same hands through his hair.

Hegseth was seen doing just that while listening to Treasury Secretary Scott Bessent deliver remarks. Footage went viral after it was shared by progressive journalist Aaron Rupar.

Keep ReadingShow less
Screenshot of Darline Graham
NewsNation

Lindsey Graham's Sister Hit With Hilariously Brutal Factcheck After Claiming She's 'Not Being Handed' His Senate Seat

Darline Graham, the sister of late Republican Senator Lindsey Graham, was swiftly fact-checked after claiming that she's "not being handed" her brother's seat even though she quite literally was named to temporarily fill it.

Senator Graham died on the evening of July 11 after returning from an official visit to Ukraine. According to a preliminary finding from the medical examiner, shared by his office, Graham died after suffering an aortic dissection—a tear in the inner wall of the aorta—linked to hardening of the arteries.

Keep ReadingShow less
John Hinckley Jr. (left) shares a new message for Jodie Foster (right) 45 years after the assassination attempt on President Ronald Reagan.
The Mark Joseph Show/YouTube; Gary Gershoff/WireImage

John Hinckley Jr. Shares New Message For Jodie Foster 45 Years After Shooting Ronald Reagan To Impress Her

Some Hollywood stories fade with time. The disturbing history connecting Jodie Foster and John Hinckley Jr. is not one of them. For those who don’t know, on March 30, 1981, Hinckley waited outside the Washington Hilton in Washington, D.C., where President Ronald Reagan had just addressed 5,000 members of the AFL-CIO.

As Reagan emerged from the hotel, Hinckley fired six shots from a revolver. One bullet ricocheted off Reagan’s limousine and struck him beneath his arm. White House Press Secretary James Brady, police officer Thomas Delahanty and Secret Service agent Timothy McCarthy were also wounded.

Keep ReadingShow less
Donald Trump; Scott MacFarlane
Jim Watson/AFP via Getty Images; CNN

Journalist Reveals Just How Much Money Has Been Diverted From National Parks For Trump's Vanity Projects—And People Are Livid

In a series of articles for MacFarlane News and MeidasTouch, videos, and an appearance on CNN, Chief Washington Correspondent for MeidasTouch Scott MacFarlane blew the whistle on MAGA Republican President Donald Trump’s raiding of National Park Service (NPS) funds. Aided by his Interior Secretary Doug Burgum, Trump diverted NPS money to pay for all of his White House and Washington D.C. vanity projects.

Trump’s hand-selected, mostly unwanted and unnecessary White House grounds and National Mall projects—things like a botched reflecting pool resurfacing, golden decor, a helipad, a ballroom, gilded statues, and giant flagpoles—alone took $423 million from major national parks across the country.

Keep ReadingShow less
Woman using hair tie
aire images/Getty Images

Engaged Woman Sparks Theories After Finding Strange Hair Tie Near Her And Fiancé's Home Entryway

Finding out that your partner is cheating doesn't always have to involve accidentally seeing a nefarious text message or walking in on the act. But sometimes, signs of what could be cheating might have a far stranger explanation.

Posting in the "Girl Dinner Diaries" subReddit, Redditor Jack-of-not posted a photo of an open-faced sandwich and explained what she'd discovered:

Keep ReadingShow less