Online Retailers Face Rising Risk From Strike-Through Pricing Claims

Arecent review of civil filings in Washington, DC reveals a conspicuous pattern challenging strike-through pricing: a single nonprofit plaintiff, represented by a small group of attorneys, has filed more than 150 lawsuits against online retailers across the country—many of them small businesses.

Surge in DC CPPA Pricing Lawsuits

A DC-based organization is filing the wave of lawsuits under the District of Columbia Consumer Protection Procedures Act (CPPA). The lawsuits challenge so-called reference pricing, strikethrough, or “sale” pricing. They allege misleading price comparisons, failure to disclose material facts, and ambiguous representations that tend to mislead. The letters typically seek statutory damages of $1,500 per product purchased, plus attorneys’ fees. The plaintiffs allege that selling into DC is enough to create nationwide exposure.