Fake Sales Alleged in Outlet Store Lawsuit

Alleged fake markdowns at Banana Republic and the GAP are named in a fake sales lawsuit alleging false advertising.

The plaintiff says that these popular outlet stores actually hiked up prices, according to the fake sales lawsuit. One woman filed a lawsuit on behalf of other New Jersey consumers who shopped at the Banana Republic and GAP outlet stores alleging that the stores advertised high original prices and then made deceiving markdowns that qualifies as false advertising.

Fake Sales Lead Consumers to Flock to Outlet Stores, Claim Says

Sales advertising massive discounts might drive a consumer to visit an outlet or other store based on the perception they would receive a great deal. However, if the items were marked up to begin with in order to make it seem like the discount was a huge sale, consumers might not be able to make an informed decision.

This is the basis behind the most recent fake sales lawsuit against the GAP and Banana Republic. The two stores maintain outlet locations in New Jersey that promise high discounts for consumers. While the discounts may indeed be high, the fake sales lawsuit argues that it’s because the companies are marking up the original prices to mislead buyers.

The lawsuit was recently filed in federal court in New Jersey and alleges that retailers inflated original prices, leading customers to think they were receiving a massive markdown on outlet store items. The discounted prices, however, were the same prices at which the defendants regularly and consistently sold their items.

GAP and Banana Republic outlet stores across the state that were operating between October 2011 and Fall of 2017 are named in the suit. The complaint alleges that some of the items in the fake sales were marked as up to 70% off the original GAP factory prices and printing total discount amounts that were deceiving to consumers on the receipts. The alleged inflation in prices were the result of fake sales schemes trying to lure consumers in to make a purchase.

According to the complaint, these acts involving fake sales violate the state and federal sales regulations. Similar lawsuits have been filed against other companies in recent years including Kohl’s and JC Penney’s alleging those companies used marketing techniques to try and lure customers in with major discounts that were truly no different than the prices that would have been offered anyways.

Customers use advertising information including notifications about sales to make decisions about where to shop. According to the fake sales lawsuit, the plaintiff and many other consumers may have been lured inadvertently to make a purchase of a product at GAP or Banana Republic factory outlet stores that was not really the sale they believed it to be.

If you are concerned that you or a loved one has been duped by fakes sales or other issues that could prompt consumer false advertising lawsuits, consult with the experienced attorneys at Bradley/Grombacher- schedule your call today   

Note: Bradley/Grombacher is not representing the plaintiff in this lawsuit.