Do Retailers Use Pricing Schemes to Mislead You?

Do Retailers Use Pricing Schemes to Mislead You?
Photo (cc) by jdnx

Macy’s and Bloomingdale’s are among the latest retailers to be sued over allegedly “deceptive and misleading” pricing practices.

A federal class-action lawsuit was filed against the department store chains, both owned by Macy’s Inc., late last month.

Plaintiffs Kristin Haley and Sylvia Thompson accuse the companies of misrepresenting price discounts at their regular and outlet stores “by purporting to offer steep discounts off fabricated, arbitrary and false … prices.”

The lawsuit continues:

“Specifically, Defendants represented on the price tags of their products … prices that were artificially inflated and arbitrary and did not represent a bona fide price at which they previously sold such products or the prevailing market price for such items.

Defendants then offered … to sell the items for a reduced or discounted sale price, which supposedly represented a significant discount …”

In some cases, items were sold at listed or original prices that had been inflated to at least twice the manufacturer’s suggested retail price, or MSRP, and then marked down by at least 50 percent, according to the lawsuit. As a result, the apparently discounted price was actually the same as the MSRP.

Last year, research by the Center for the Study of Services — also known as “Consumers’ Checkbook” — found Macy’s (along with Sears and Kohl’s) to be among the worst retailers for “deceptive advertising practices” and, in some cases, violations of federal law.

To learn how the center recommends that shoppers protect themselves against such “sales” practices, don’t miss “How to Avoid Being Suckered by a Store’s Fake ‘Sale.’

To learn how to take advantage of final sales that started this week at Macy’s stores that are scheduled to close, don’t miss “36 Macy’s Stores to Close.”

Do you agree with this lawsuit’s accusations about inflated prices and discounts at Macy’s and Bloomingdale’s? Share your thoughts below or on our Facebook page.

Popular Articles

Never Use Your Debit Card for These 9 Things
Never Use Your Debit Card for These 9 Things

Use your debit card for one of these expenses, and you could risk your bank account balance, your credit score or even identity fraud.

Don’t Want to Owe Taxes After You Die? Avoid These 17 States
Don’t Want to Owe Taxes After You Die? Avoid These 17 States

In one state, the tax man is especially tough on the estates of those who shake off this mortal coil.

5 Reasons You Should Not Delay Retirement
5 Reasons You Should Not Delay Retirement

Waiting until age 70 to retire isn’t for everyone. Could you be waiting too long to quit the 9-to-5 grind?

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments