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ARTICLE · 18 APRIL 2017

Court Dismisses "Phantom Markdown" Suit Against Saks

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On March 22, the U.S. District Court for the Southern District of California dismissed a putative class action against Saks Inc. alleging that Saks advertised "phantom markdowns" of Saks-branded products.

United StatesLitigation, Mediation & Arbitration
Jacquelyn Ferry
Jacquelyn Ferry
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On March 22, the U.S. District Court for the Southern District of California dismissed a putative class action against Saks Inc. alleging that Saks advertised "phantom markdowns" of Saks-branded products. The Plaintiff alleged that he purchased a pair of men's shoes "valued" by Saks at $145 but sold at a discounted price of $79.99. The plaintiff claimed that he only bought the shoes because he believed he was receiving a significant value and that Saks's $145 market price was false and misleading.

The Plaintiff filed a complaint on behalf of a putative nationwide class of all persons who purchased Saks-branded products while in California. The plaintiff alleged claims for violation of: (1) False Advertising Law; (2) California's Unfair Competition Law ("UCL"); (3) California Consumer Legal Remedies Act ("CLRA"); and (4) Federal Trade Commission Act.

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