Los Angeles, CA: JC Penny is facing a consumer fraud class action lawsuit over its alleged practice of artificially inflating merchandise prices only to mark them down to create the appearance of a "sale"price. According to the lawsuit, the retail chain' pricing practices are equivalent to deceptive and fraudulent advertising.
The class action was certified last week, and accuses the national retail chain of operating a "massive, years-long, pervasive campaign" to deceive shoppers about its pricing for private-label brands, and for outside brands such as Liz Claiborne, sold exclusively by JC Penny.
The lawsuit states that Cynthia Spann, lead plaintiff in the class action, discovered the deceptive advertising practices after buying three blouses for $17.99 each, a 40 percent discount from the "original" $30 price, only to learn the price was never above $17.99 at any point during the prior three months.
The case is Spann v. J.C. Penney Corp et al, U.S. District Court, Central District of California, No. 12-00215.
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