Fake Discounts' – The Latest Shopping Challenge

 

Fake Discounts' – The Latest Shopping Challenge

When is “50% off” not really 50% off? Evidently, a lot.

Thanks to the “fake discounts,” some sellers may be setting themselves up for a quick sale. However the truth is starting to come out that companies may inflate the original prices of their products, and then offer consumers discounts that were not as significant as advertised. These sellers could be setting themselves up for some serious blowback. 

Kohl’s and Hobby Lobby were among the first sued for using the tactic, but others – despite the Federal Trade Commission (FTC) and the State of California having laws against the practice – have adopted the same advertising model and those class action lawsuits continue.

Recently, Dovel & Luner LLP filed suits against Emma Mattress Inc., Brooklyn Bedding LLC, the Shade Store, and RugsUSA for allegedly using fake discounts to drive greater sales of their mattresses and bedding products. 

“Advertised ‘sale’ prices are important to consumers,” the lawsuit against Emma Mattress claims. “Consumers are more likely to purchase an item if they know that they are getting a good deal. Further, if consumers think that a sale will end soon, they are likely to buy now rather than wait, comparison shop, and buy something else.”