In October 2017, a class-action lawsuit
was filed against The Gap and Banana Republic for allegedly deceptively advertising pricing discounts on apparel and other merchandise by misleadingly comparing percentage-off discounts to fake original prices. According to the complaint, the store consistently and regularly sells items at “discounted” prices and thus customers do not actually save the amount represented on receipts because they are actually buying items at the regular price. (Pallagrosi et al v. The Gap, Inc., Gap (Apparel) LLC, Gap International Sales, Inc., Banana Republic, LLC, and Banana Republic (Apparel) LLC
, Case No. 17-cv-5905, N. D. CA.)
For more information about TINA.org’s coverage of fictitious pricing, click here.