2014 saw the plaintiffs' class action bar file a
flurry of class action lawsuits aimed at retailers' price
advertising. Several of the suits focused on alleged
"fictional" savings claims made by outlet stores. In one
of these actions, Nordstrom, Inc. scored a victory last week when
it obtained dismissal of a case filed in the U.S. District Court
for the Southern District of California.
The plaintiff, Kevin Branca, alleged that Nordstrom violated
California false advertising laws when it deceived him with false
"Compare At" price comparisons on the price tags at its
Nordstrom Rack outlet stores. For example, Branca purchased a pair
of pants for $79.97 that had a tag with a "Compare At"
price of $150 and a represented savings of 47%. Branca alleged that
these are "sham discounts" because the merchandise is
manufactured exclusively for Nordstrom Rack or are brands not sold
at mainline Nordstrom stores.
