Michael Kors Settles Consumer Fraud Pricing Class Action Lawsuit

This is a settlement for the Michael Kors Outlets Stores Consumer Fraud Class Action Lawsuit lawsuit.

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New York, NY: A $4.88 million settlement has been reached between Michael Kors Holdings Ltd and plaintiffs in a class action lawsuit alleging the company engages in consumer fraud. Specifically, the lawsuit claims that Michael Kors represents on the price tags of its Kors Outlet Products artificial "suggested retail prices" that do not represent a bona fide price at which the designer formerly sold the products. The tags also offer a price termed "our price," which represents a steep discount off the false original price.

But the [prices] used by Michael Kors ... were a sham. In fact, Michael Kors manufactures certain goods for exclusive sale at its Kors Outlets, which means that such items were never sold, or even intended to be sold at the ... price listed on their labels," the complaint states.

Under the terms of the preliminary settlement Michael Kors will replace "MSRP" with "Value" on its price tags and display signage explaining that term, or stop using reference prices for products made exclusively for its outlets.

If approved, the settlement will include shoppers who bought products from Michael Kors outlets in the four years ending July 25, 2014.

The case is Gattinella v. Michael Kors (USA) Inc et al, U.S. District Court, Southern District of New York, No. 14-05731.

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My Michael Kors purchase.

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