Burberry Named in $5 Million Lawsuit over Misleading Prices

Burberry has been named in a potential class action lawsuit, charging it with using misleading price tags at its outlet stores in an attempt to confuse consumers as to the original price of the goods. The lawsuit was filed on Thursday in the Southern District of New York court by Thomas Belcastro, “a resident of Orlando, Florida. In reliance on Burberry’s false and deceptive advertising, marketing and pricing schemes, Mr. Belcastro purchased six Burberry Outlet Products.” According to the $5 million suit, Belcastro alleges that the brand fixed price tags to make it look as though goods were be sold for a much more significant discount than they actually were.

The complaint, which is based on claims of Fraud, Unjust Enrichment, Negligent Misrepresentation, and Deceptive and Unfair Trade Practices, states: “Burberry led consumers to believe its Deceptive Reference Prices represented authentic price information about the Burberry Outlet Products they purchased. In reality, Burberry manufactures the Burberry Outlet Products for exclusive sale at its Burberry Outlets and always sells these goods for the advertised “Now” price, never the Deceptive Reference Price. Accordingly, the Deceptive Reference Prices listed on Burberry Outlet Products are fictional creations designed by Burberry to portray false price reductions … There is no bargain to be had. Deceptive Reference Price on Burberry Outlet Products exists only to create the illusion of a bargain.”

In addition to seeking upwards of $5 million, Belcastro is asking the court to certify his class action lawsuit, thereby allowing “all consumers in the United States and its territories who purchased a Burberry Outlet Product from a Burberry Outlet during the applicable liability period for their personal use” to join the lawsuit and share in the settlement amount.

Burberry, which is famous for its trench coats and cashmere scarves, said on Friday that it is committed to dealing with all its customers in a transparent and fair manner, including pricing across the business, including in its outlet stores.

This lawsuit comes on the heels of a very similar one filed against Kate Spade in December 2015, in which Spade was sued for falsely advertising original prices and corresponding price discounts on goods at one of its outlet stores.