Discounts at Columbia Sportswear Outlet Stores

January 2018: A federal judge granted final approval of the settlement agreement.

November 2017: There was a hearing on the motion for preliminary approval and, if there are no objections, the settlement will become effective January 16, 2018.

October 2017: Plaintiffs moved for preliminary approval of a proposed settlement agreement. According to its terms, Columbia agreed not to use its current price tag format in California outlet stores for items sold exclusively at outlet stores. In addition, Columbia agreed, for a period of three years, to include a label on price tags describing comparison prices by using one of six specified terms – Comparable Value, Comp. Value, Comparable Item, Comp. Item, Comparable Style, or Comp. Style – or by clearly defining any other terms used. Until it is in compliance with the settlement agreement, Columbia is required to place signs near cash registers telling customers where it got the higher price on price tags. The settlement does not provide the class with monetary relief.

September 2017: The parties notified the Court that they have reached a settlement resolving this case and requested a stay pending approval of the settlement.

October 2015: A false advertising class-action lawsuit was filed against Columbia Sportswear for allegedly misleadingly marketing the existence, nature, and amount of pricing discounts for items sold in outlet stores by offering discounts off of false regular prices (i.e., “Reference Prices”). The complaint, which was originally filed in October 2015 and amended in March 2016, alleges that the reference prices were overstated and did not represent a price at which the outlet products were previously sold. In addition, the complaint claims that products were manufactured exclusively for outlet stores and typically of lesser quality than the items sold in retail stores. (Stathakos et al v. Columbia Sportswear Co. and Columbia Sportswear USA Corp., Case No. 15-cv-4543, N. D. CA.)

For more information about TINA.org’s coverage of the marketing of pricing discounts, click here.

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