J Crew Faces Class Action over Phantom Sale Prices

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Santa Clara, CA: J Crew is facing a consumer fraud class action lawsuit alleging the clothing retailer set an arbitrary "valued at" price for every item offered for sale on the J. Crew Factory store website. However, this "original" or "regular" price is allegedly misleading because no items are ever sold at the "valued at" price, but instead are always sold at a price lower than the "valued at" price.

Filed by Joseph A. D'Aversa, individually and for all others similarly situated, the lawsuit further claims the defendants state their advertised sale prices are only available for a limited time. However each sale is immediately followed by another, similar sale. Consequently, the prices on J. Crew's factory website are not discounts at all, but in fact the regular prices of the items, the complaints states, in violation of federal regulations prohibiting the advertising of "phantom" price reductions.

The suit claims violations of consumer protection statutes in several states, violations of the New York General Business Law, violations of the New Jersey Consumer Fraud Act, breach of contract, breach of good faith and fair dealing, breach of express warranty, unjust enrichment and negligent misrepresentation.

D'Aversa and others in the class are represented by attorney Ross H. Schmierer of Paris Ackerman & Schmierer in New York, and by attorneys Stephen P. DeNittis, Joseph A. Osefchen and Shane T. Prince of DeNittis Osefchen in Marlton, New Jersey.

The case is : US District Court for the Southern District of New York Case number 1:16-CV-01590-DLC/.

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This is a problem with almost all retailers. I'm so tired of seeing ads featuring "Manufacturers' Suggested Retail Price" (MSRP). They are always inflated & the store is advertising a fair market price as a sale price. Would appreciate seeing this practice stopped.

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