San Francisco, CA: A potential class action lawsuit against retailer Kohl' has been reinstated by a federal appeals court in California. The consumer fraud lawsuit alleges Kohl's Department Stores Inc. misstated in advertising that items had been marked down.
"Price advertisements matter," Judge Stephen Reinhardt wrote. "When a consumer purchases merchandise on the basis of false price information and when the consumer alleges that he would not have made the purchase but for the misrepresentation, he has standing to sue."
The false advertising lawsuit, entitled Antonio S. Hinojos v. Kohl' Corp., Case No. 11-55793, in the U.S. Court of Appeals for the Ninth Circuit, was filed by Antonio S. Hinojos who claims he would not have made several purchases at Kohl's had he known the prices did not represent markdowns.
According to the lawsuit, Hinojos claims he bought Samsonite luggage that was advertised as 50% off its "original" price of $299.99, Chaps Solid Pique polo shirts that were marked down 39% from their "original" price of $36, and other items that were advertised at being at substantially reduced prices. However, Hinojos alleges those marked down prices were the prices at which Kohl' regularly sold those items. Further, Hinojos claims that the prevailing market prices for the items he purchased for the three months immediately preceding his purchase were "materially lower"than what was advertised as "regular."
Consequently, Hinojos alleges he "never received the actual value in price discounts"as promised.
Plaintiffs are represented by Matthew J. Zevin of Stanley Iola LLP and Derek J. Emge of Emge & Associates.