Helzberg Diamonds Lawsuit Filed Over ‘Fake’ Online Sales

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A proposed class action lawsuit alleges Helzberg Diamonds uses deceptive sales tactics to trick consumers into thinking they’re getting a better deal than they actually are on products priced at $300 or more.

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The 35-page complaint centers on supposedly limited-time promotions offered on Helzberg.com, including sitewide sales (e.g., “15% Off Sitewide”) and minimum value discounts (e.g., “$50 off $299+”). According to the lawsuit, the jewelry retailer consistently lists its pricier products as discounted from their higher “regular” prices, and its supposedly limited-time discounts run in perpetuity.

For example, Helzberg Diamonds advertised a sitewide, 15-percent-off sale that would end on November 27, 2024, only to offer another sitewide sale with a similar discount on December 1, 2024, the complaint alleges. Indeed, an investigation performed by the plaintiff’s counsel revealed that the defendant’s sales have persisted continuously since at least January 9, 2022, the filing alleges.

“As a result, the list prices Defendant advertises for High-Priced Products are not actually Defendant’s regular prices, because High-Priced Products are consistently available for less than that,” the filing claims. “The purported discounts Defendant advertises are not the true discount the customer is receiving, and are often not a discount at all.”

Per the case, Helzberg Diamonds advertises fake sales because consumers are more likely to buy a product if they believe they are getting a substantial discount. In addition, consumers who are presented with a limited-time promotion often feel a sense of urgency that makes them more inclined to make an immediate purchase, the suit says.

“Thus, Defendant’s advertisements harm consumers by inducing them to make purchases based on false information,” the complaint contends.

The case claims that Helzberg Diamonds’ “made-up discounts” violate California’s false advertising law, which prohibits retailers from advertising an item’s former price unless it was the “prevailing market price” during the preceding three months. Federal Trade Commission regulations similarly preclude companies from making up an inflated, previous price to create the appearance of substantial savings, the case relays.

The Helzberg Diamonds lawsuit looks to represent all individuals who, during the applicable statute of limitations period, purchased at least one Helzberg product that retailed for over $299.99 and was advertised at a discount.

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