Computer seller Lenovo has been hit with a class action lawsuit under California business law, saying the seller has allegedly misled buyers into believing they are buying at a discount, when they are not.
"The use of false and misleading price reductions, also known as false discounts, is an unlawful marketing practice that harms consumers by artificially increasing the perceived value of the item being sold," says the lawsuit, filed in U.S. District Court for the Northern District of California. " By increasing the perceived value, Lenovo induces consumers to pay more for its products based on the mistaken belief they are getting an incredible deal."
It cites one model advertised on the Lenovo website that had a list price of $3,579, but was on sale for $2,147.
"In reality, the advertised savings are fictitious," the suit states.
A California consumer sued Lenovo in 2016 over a similar issue, according to the suit.
"As a result of that lawsuit, Lenovo entered into a court-approved class action settlement agreement," the suit states. "Discovery will show that despite entering into a court-approved class action settlement agreement, and despite knowing full well that advertising false discounts was unlawful,
Lenovo continued to advertise false discounts for numerous products sold on its website."
The suit seeks an injunction against Lenovo barring it from continuing allegedly to violate California's Unfair Competition law. The lawsuit also seeks a payout in the form of actual and unspecified punitive damages, plus attorney fees.
The plaintiffs are represented by attorneys Daniel A. Rozenblatt, Natasha Dandavati and Seth W. Wiener, of the Edge law firm, of San Francisco; and Tarek H. Zohdy, Cody R. Padgett and Laura E. Goolsby of Capstone Law APC, of Los Angeles.
Hermanson v. Lenovo Group Limited, U.S. District Court for the Northern District of California, 3:23-cv-05890