Zara hit with $5M lawsuit

Zara has been hit with a lawsuit accusing it of deceptive pricing in what is being described as a bait-and-switch scheme.

The more than $5 million class action suit was filed in the U.S. District Court of California. Plaintiff Devin Rose claims the retailer took part in deceptive practices that overcharged shoppers in a variety of ways.

Some tags that showed prices in euros were incorrectly calculated into U.S. dollars at the register or lure shoppers into thinking something is less expensive due to lower list prices when displayed in euros.

Rose also claims that in instances where Zara includes a price in dollars, "the dollar amount is almost always applied in the form [of] a pricing label affixed over the euro price actually printed on the tag. In this context, the dollar amount similarly is far in excess of the true converted amount if the euro price printed on the tag were properly converted to dollars," according to The Fashion Law.

The plaintiff filed suit after purchasing three shirts from a Zara store in Sherman Oaks, California and claims that millions of shoppers have been the victims of the practice. The case is being proposed as a class action and is awaiting approval by the court.  

Zara told TFL in a statement: "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."

For more:
- see The Fashion Law story
- see this KABC-TV story

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