A new class action lawsuit has been filed against a major clothing retailer, accusing the company of engaging in deceptive pricing practices to mislead consumers into thinking they are getting significant discounts. The complaint was filed by Lynch Carpenter LLP on July 17, 2024, in the Superior Court of California for the County of San Francisco against Banana Republic LLC and Banana Republic (Apparel) LLC.
According to the plaintiffs, Natasha French and Chang Cho, the retailer has been running a years-long campaign that involves advertising false reference prices and fictitious discounts at its Banana Republic Factory stores and on its e-commerce website. The plaintiffs allege that this practice tricks consumers into believing they are purchasing items at a substantial discount from an inflated "original" price that no one ever pays. This scheme allegedly leads consumers to overpay for merchandise under the false impression that they are receiving a bargain.
The complaint details how Banana Republic’s false advertising violates several laws, including California's Unfair Competition Law (UCL), False Advertising Law (FAL), Consumers Legal Remedies Act (CLRA), and the Federal Trade Commission Act (FTCA). The plaintiffs argue that these practices not only deceive consumers but also artificially inflate the market price of products by creating a misleading perception of value. "Protection of unwary consumers from being duped by unscrupulous sellers is an exigency of the utmost priority in contemporary society," reads a quote from Vasquez v. Superior Court included in the filing.
The plaintiffs seek monetary damages, restitution, declaratory and injunctive relief to halt these deceptive practices. They aim to correct the false perceptions created by Banana Republic’s advertising and obtain redress for those who have overpaid for merchandise due to these misleading tactics. Specifically, they request actual, compensatory, statutory, and punitive damages; equitable restitution; reasonable costs and attorneys’ fees; and other appropriate relief based on how much Banana Republic was unjustly enriched through their sales.
Representing the plaintiffs are attorneys James B. Drimmer, Todd D. Carpenter, and Scott G. Braden from Lynch Carpenter LLP. The case has been assigned Case ID CGC-24-616504 with Judge Laura Simmons presiding over it.