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Shoppers flock to retailers every Black Friday in hopes of securing the best deals on the year’s hottest products. There are many nasty aspects of Black Friday — the long lines, the overzealous shoppers, the limited stock of items — but phony pricing and fake sales shouldn’t be among them. But that’s exactly what happened to folks in Los Angeles during the 2016 holiday season, leading to the biggest Black Friday lawsuit in history. Macy’s, and Kohl’s for a practice called “false reference pricing,” a nefarious tactic whereby retailers lie about the original price of an item to make a discount appear bigger than it actually is. For example, Sears sold a Kenmore washing machine at a “sale price” of $999.99, compared to a “regular price” of $1,179.99. The problem was the so-called sale price was actually the price that product INSIDE THIS ISSUE From the Desks of Razumich & Delamater PAGE 1 Remembering Pearl Harbor PAGE 1 Teach Your Kids About Holidays PAGE 2 The History of the 3 Wise Men PAGE 3 Take a Break PAGE 3 Holiday Roast Prime Rib PAGE 3 The Biggest Black Friday Lawsuit in History PAGE 4 In December of 2016, the Los Angeles City Attorney’s Office sued J.C. Penney, Sears,
FAKE DISCOUNTS AND ANGRY SHOPPERS A Massive Black Friday Lawsuit
was offered at every day. Therefore, it wasn’t actually on sale.
Most retailers offer discounts around the holidays to encourage shoppers to come into their stores or visit their websites. Promotions and sales are great tools in any business’s arsenal, provided they aren’t out to mislead customers. Big-box stores may try to manipulate innocent people, and it’s up to aggrieved customers to hold those corporations accountable. Nearly every year, you’ll read about a class-action lawsuit that develops in response to the shady tactics of businesses eager to secure those holiday shopping dollars. Are there great bargains to be had on Black Friday? Of course. But if something sounds too good to be true, it very well might be. Keep your eyes peeled and don’t let retailers trick you into a purchase you wouldn’t make otherwise.
Duping your customers is a bad business practice, but what makes it illegal? Well, California law requires that retailers post a retail price no higher than what the product was sold at within three months prior to the ad. “Families today … are striving to get the very most they can get from an extremely hard-earned holiday shopping dollar,” said LA City Attorney Mike Feuer. “They deserve to make an informed decision.” After the suit was brought against them, the retailers all quickly moved to settle, promising to never engage in false reference pricing again.
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