If you regularly shop popular retail store like Macy’s, Sears, JC Penney and Kohl’s, it shouldn’t come as much of a surprise that they frequently inflate the suggested retail prices of items, making it appear that the consumer is getting a better deal than they actually are. What may surprise you though is that this type of “false advertising” is illegal in some states…specifically in California. CA law actually bans retailers from advertising a higher original price unless a product was actually available at that price within three months of the ad running.
The Los Angeles city attorney office is expected to file a suit today against the above mentioned retailers and apparently this isn’t the first time. Just last year both JCPenney and Kohl’s landed in hot water for the same illegal practice and both had to pay out some hefty fines! JCPenney settled and dished out 50 MILLION is cash and store credits to customers, while Macy’s agreed to pay 6.15 million dollars. WOWZA. Guess either they didn’t learn lesson…or it’s still worth it for them to list the inflated prices and just pay the fine. It will be interesting to see if the cost of breaking the law will increase this year for the repeat offenders! We’ll keep you posted if any updates are made in the case.
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