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.

[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

screenshots of Leonardo DiCaprio at the Golden Globes
@kylebuchanan/X

Lipreader Breaks Down What Leonardo DiCaprio Was Flamboyantly Saying In Viral Golden Globes Video

A candid moment of actor Leonardo DiCaprio at the recent Golden Globes went viral for the actor's over the top mannerisms and facial expressions.

The video snippet left people laughing, but it also left them wondering what exactly he was saying. The only word everyone seemed to decipher was "K-pop," a genre of popular music originating in South Korea.

Keep ReadingShow less
Barron Trump
Chip Somodevilla/AFP via Getty Images

MAGA Has 'Simple Diplomatic Solution' For How The U.S. Can Acquire Greenland—And It Involves Barron Trump

MAGA supporters have everyone rolling their eyes after they suggested President Donald Trump's son Barron Trump could marry 18-year-old Princess Isabella of Denmark in exchange for Greenland.

Greenland is an autonomous territory of the Kingdom of Denmark and is, alongside the Faroe Islands, the only other autonomous territory within the Kingdom. Citizens of both Greenland and the Faroe Islands are full citizens of Denmark. As one of the Overseas Countries and Territories of the European Union, Greenland’s citizens are also recognized as EU citizens.

Keep ReadingShow less
Ilhan Omar; Elon Musk
Kent Nishimura/Getty Images; STR/NurPhoto via Getty Images

Ilhan Omar Effortlessly Drags Elon Musk After He Parrots Easily-Debunked Conspiracy About Her

Minnesota Democratic Representative Ilhan Omar called out billionaire Elon Musk after he claimed erroneously that Somalis are being brought illegally to Minnesota to help keep her in office.

Musk amplified a graphic on X that asserted Democrats support illegal immigration as a way to absorb noncitizens into their voting base. Musk accused Omar, who was born in Somalia, of profiting from the purported arrangement.

Keep ReadingShow less
do not cross police barricade tape close-up
David von Diemar on Unsplash

True Crime Lovers Reveal 'Dumb Mistakes' Serial Killers Make That Get Them Caught In The End

True crime has become incredibly popular with the introduction of cable television then streaming services and podcasts.

Once just a section in bookstores, there are entire cable channels dedicated to recapping crime.

Keep ReadingShow less
UFC stars Mackenzie Dern, and Brian Ortega at the 83rd Annual Golden Globes.
Rich Polk/2026GG/Penske Media via Getty Images

'Vanity Fair' Just Explained That Out-Of-Place UFC Moment At The Golden Globes—And Yeesh

At the Golden Globes, there are a few things we all can reliably expect: couture gowns, a headline-making host, unexpected versus disappointing wins, the emotional speeches, and at least one bit that lands… oddly.

This year’s most baffling attempt arrived courtesy of the Ultimate Fighting Championship, which briefly hijacked the ceremony with a moment so out of place it felt like the broadcast had accidentally cut to a different network.

Keep ReadingShow less