Kenneth Cole Faces Consumer Fraud Class Action Over Outlet Pricing

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Santa Clara, CA: A consumer fraud class action lawsuit has been filed against Kenneth Cole Productions Inc, alleging the fashion retailer misled consumers by raising its original prices that are paired with what appear to be deep discount prices on items sold at its exclusive outlet stores.

Specifically, the lawsuit alleges that Kenneth Cole misleads customers into believing they are purchasing items at a savings at its exclusive outlet stores by listing artificially high "suggested retail prices"on its product tags next to the term "our price"which is significantly lower. The lawsuit claims that because these products were never for sale in any other store, Kenneth Cole is in violation of California and federal laws.

"The plaintiff, in short, believed the truth of the price tags attached to the products she purchased at a Kenneth Cole outlet, which expressly told her that she was getting a terrific bargain on her purchase,"the complaint said. "In fact, she was not getting a bargain at all." Filed by lead plaintiff Peggy Cabrera, the lawsuit asserts that Cabrera was induced to purchase a sweater and shirt top from a Kenneth Cole Outlet store in California after noticing significant differences in price between the "MSRP"and "our price"label, particularly after observing that not all product price tags made this distinction.

"In reality, Kenneth Cole never intended, nor did it ever, sell the item at the represented 'MSRP,'"the complaint states. "Thus, plaintiff was deceived by the false price comparison into making a full retail purchase with no discount."

In the lawsuit, Cabrera contends that Kenneth Cole is taking advantage of the term "outlet store"because the idea of shopping there conveys to reasonable consumers that at least some products comprise merchandise formerly offered for sale at full-price retail locations, which is not the case at exclusive Kenneth Cole outlets.

Further, the complaint states that the Federal Trade Commission explicitly describes the fictitious pricing scheme employed by Kenneth Cole as deceptive, making it a violation of the FTC Act, as well as the California Business and Professions Code.

Peggy Cabrera is represented by Jason Henry Alperstein of The Kopelowitz Ostrow Firm PA and Wayne Scott Kreger of the Law Offices of Wayne Kreger. The case is Cabrera v. Kenneth Cole Productions, Inc, case number 1:15-cv-05107, in U.S. District Court for the Southern District of New York.


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Last updated May 21 2020

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