False Discount Lawsuit Against Ann Taylor Ends With $6M Settlement

A New York federal judge has provided preliminary approval of a more than $6 million settlement regarding the Ann Taylor Company. According to the false discount class action lawsuit, the clothing retailer misled consumers with discounts that were marked down from prices that never existed at either the outlet or the factory stores.

Latest False Discount Lawsuit Settled With Ann Taylor

Under the terms of the false discount class action settlement, Ann Taylor will set aside 425,000 vouchers for the class that total more than $5.1 million and $500,000 for administrative costs in addition to a cash award for class members who were affected by alleged false advertising scheme. The marketing and labeling practices of the company must also be changed as a result of the false discount class action settlement.

This is not the first false discount class action lawsuit. Many consumers argue that outlet stores and other retail locations lead them to believe they are receiving a steep discount, although the alleged percentage off does not ever reflect the accurate pricing of the material, according to the class action lawsuits.

Consumers allege that tags inside a store offering false discounts might suggest that the items are 50% of more off, leading the consumer to take quick action to purchase. This false discount, however, is misleading if the original price of the items was never 50% or even higher than the presently-advertised price.

Affected consumers said they were duped into believing they were getting a great deal when the discounted prices didn’t reflect the percentages advertised.

Who Is Included in the Class Action?

Anyone who purchased these discounted clothing items between May 2012 and May 2016 may be eligible to recover a portion of the settlement. The false discount class action lawsuit was originally filed by two consumers who alleged that the clothes sold at the stores are misrepresented as marked down even though the full price advertised by Ann Taylor never applied to the items.

The consumers participating in the false discount class action lawsuit say that they would never have purchased the items or paid as much for them if they didn’t believe they were receiving the discount that was advertised.

The false discount class action lawsuit alleges that Anne Taylor violated the Unfair Competition Law and Consumers Legal Remedies Act, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and California’s False Advertising Law.

Similar lawsuits for false discounting have recently affected Burlington Coat Factory, Amazon, Burberry, and the Gap. JC Penny paid more than $50 million in a recent settlement over false discounts. Another major clothing retailer, Michael Kors, also paid $4.9 million to settle similar claims.

If you believe that you have have been tricked by false discounting, you should consult with the attorneys at Bradley/Grombacher to evaluate your claim. Fill out the form on this page to learn more.

The false discount class action lawsuit is Morrow et al. v. Ascena Retail Group Inc. et al., Case No. 1:16-CV-03340 in the U.S. District Court for the Southern District of New York.

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