Fake Sale Pricing? Lawsuit Investigation into Poster, Canvas Art Websites

If you bought posters, canvas art, frames or other goods on sale at any of the following websites, attorneys working with ClassAction.org would like to speak with you:

They’re investigating whether the websites deceived customers by listing certain items at a discount when they were never actually sold at their higher, “regular” price and/or by advertising “limited-time” deals for products that are almost always on sale.

If so, it’s possible that class action lawsuits could be filed to help consumers get some of their money back.

Attorneys believe shoppers may have been tricked into thinking they were getting a “bargain” and ended up buying goods that they otherwise wouldn’t have bought or paid as much for. 

What’s an Example of Deceptive Pricing?

When a company uses a former price in advertising a discount, the comparison price should be the “actual, bona fide price” at which the good was offered to the public “on a regular basis for a reasonably substantial period of time,” according to the Federal Trade Commission’s (FTC) Guides Against Deceptive Pricing. If the former price is an “artificial, inflated price” established solely to show a large discount, “the ‘bargain’… is a false one,” the FTC writes.

The following is an example of a deceptive pricing scheme from the FTC:

“John Doe is a retailer of Brand X fountain pens, which cost him $5 each. His usual markup is 50 percent over cost; that is, his regular retail price is $7.50. In order subsequently to offer an unusual ‘bargain’, Doe begins offering Brand X at $10 per pen. He realizes that he will be able to sell no, or very few, pens at this inflated price. But he doesn't care, for he maintains that price for only a few days. Then he ‘cuts’ the price to its usual level—$7.50—and advertises: ‘Terrific Bargain: X Pens, Were $10, Now Only $7.50!’ This is obviously a false claim. The advertised ‘bargain’ is not genuine.”

The FTC also advises that a company should not make a “limited” offer when, in fact, that sale is not limited.

When a consumer is given a false impression that they are getting a serious discount, they may be induced into buying something they otherwise would not have, misled into believing the product has a higher value than it actually does and willing to pay more than they normally would. A fake limited-time sale can also dissuade customers from doing any comparison shopping and force them into making an immediate purchase.

Now, it’s completely legal for a company to run a legitimate sale – that is, discounting goods from their true, original prices for a certain period of time in an attempt to move more product. By perpetually offering items at a discount – and rarely selling them at their regular price – a company could be accused of deceptive advertising and violations of both state and federal law.

Indeed, numerous fake sale lawsuits have been filed in the past several years targeting HP, Hobby Lobby and a bevy of clothing retailers including Old Navy, Chico’s and Dress Barn.

How Could a Class Action Lawsuit Help?

Successful lawsuits could give consumers the chance to get back some of the money they spent on their poster purchases. It could also force the websites to make changes to any pricing strategies found to be deceptive or illegal.

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