This class action challenges the pricing practices at California Nordstrom Rack stores. These stores purport to offer the shopper discounts on retail prices. This class action alleges that those supposed retail prices are in fact nonexistent and are designed to make the shopper think she is getting a discount when in fact she is not.
Outlet stores are everywhere today and are designed to offer shoppers discounts on products and goods when compared to non outlet prices. In an effort to increase profits, major retailers have, without notice to consumers, begun using company-owned outlet stores to sell made-for-outlet goods that are never intended to be sold at non-outlet stores.
Nordstrom operates 167 outlet stores under the Nordstrom Rack name.
Most clothes and other goods at a Nordstrom Rack store have a unique price tag. The picture above displays a similar price tag as the one used by the plaintiff in the complaint. The tag lists a “Compare At“ price, then the discount offered, then the current price.
This class action alleges basically that the “Compare At” price is phony. The “Compare At” price is not a retail or original price. Allegedly, a shopper can not find that same article of clothing at any Nordstrom store for that “Compare At” price. This class action alleges that this violates several California laws and among other things seeks to modify that pricing strategy.