In September 2017, a class-action lawsuit
was filed against Fossil for allegedly deceptively advertising discounts at its outlet stores. According to the complaint, stores misleadingly represent savings by comparing the discounted prices to false original prices that were not a price at which the item was previously sold or a prevailing market price within the three months immediately before the publication of the ad, as required by California law. In addition, the complaint alleges that products are designed and manufactured exclusively for outlet stores, meaning that they were never sold at the represented price in the retail stores (where higher quality products are sold). (Safransky et al v. Fossil Group, Inc., Fossil Stores I, Inc., and Does 1-100
, Case No. 17-cv-1865, S. D. CA.)
For more information about the advertising of discount prices and TINA.org’s coverage of the issue, click here.