Zara is Being Sued For "Deceptive Pricing" in the US

There is a $5million class action lawsuit against clothing company Zara

21 March, 2018
Zara is Being Sued For "Deceptive Pricing" in the US

Zara is in troubled waters this week as they stand accused of scamming US customers into paying more money for their clothes leading the brand to being "unjustly enriched to the tune of billions of dollars.​"

​A $5million class action lawsuit has been launched against clothing company Zara​ stating that the retail giant has practised 'fraudulent​' pricing across the US.

The Fashion Law obtained the lawsuit which accuses Zara of duping customers by using 'bait and switch' practises on its pricing labels. It is argued that Zara firstly lure customers to the till by labelling the clothes with the price in Euros, rather than dollars, and when they do price them in dollars, the amount is largely inflated above conversion rates.

The lawsuit states: "Zara's practice of assuring consumers that the discrepancy between the tag price in euros (€), and the dollar ($) price at the register is merely the result of an appropriate application of the conversion rate from euros to dollars.

'In fact, the conversion rate is entirely misapplied - to the extent it is even applied at all - such that U.S. consumers are paying far more than the true prices of the products.'

The suit was filed by Devin Rose and states that he (and other Zara shoppers) "has been damaged in that Zara's deceptive pricing practices caused him to overpay for the garments he purchased."​

It continues: ""in both cases, Zara violates State and Federal law by luring consumers to the register with perceived lower prices using a foreign currency and surreptitiously imposing an arbitrary markup without making an appropriate, or any, disclosure to the consumer."

In a statement to The Fashion Law a representative for Zara said: "Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States. While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers. 

"We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defense in due course through the legal process."

How is this one going to play out? We'll have to wait and see...

Credit: Cosmopolitan
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