Los Angeles, CA: Michael Kors LLC is facing a consumer fraud class action lawsuit alleging the discount prices it offers at its outlet stores and which are marketed as providing deep discounts over the suggested retail prices, are based on fabricated original prices.
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.
Filed by lead plaintiff Tressa Gattinella, the lawsuit claims that Gattinella purchased a pair of jeans at a Kors Outlet in California earlier in the month for $79.00, believing she was paying significantly less than the original price of $120 listed on the tag, the suit states.
However, the lawsuit contends that despite the Gattinella' belief that she purchased the goods at a 33 percent discount, Michael Kors never intended to sell the jeans at the artificial $120 price listed on the tag, the suit says. By listing the false price comparison, Michael Kors deceived the plaintiff into making a full retail purchase with no discount, the complaint alleges.
"Plaintiff would not have made such purchase, or would not have paid the amount she did, but for Michael Kors' false represented of the former price ... of the items she purchased, as compared with the supposedly discounted 'our price' at which Michael Kors offered the items for sale," the lawsuit states.
The lawsuit is seeking certification for a class of all California residents who purchased apparel from a Kors Outlet store and urges the court to issue an injunction ordering the company to comply with California's comparative price advertising laws and prohibiting Michael Kors from using deceptive practices moving forward.
Further, the lawsuit seeks a judgment of restitution and disgorgement of all profits and unjust enrichment Michael Kors allegedly obtained from the class. The suit is Gattinella v. Michael Kors (USA), Inc. et al., case number 1:14-cv-05731, in the U.S. District Court for the Southern District of New York.
The plaintiffs are represented by the Law Offices of Wayne Kreger and Jason Alperstein, Jeffrey M. Ostrow and Scott A. Edelsberg of Kopelowitz Ostrow PA.
