A Neiman Marcus shopper recently requested approval of a $2.9 million settlement, which would end the proposed class action against the retailer for allegedly deceptive "compare to" price tags. The settlement, if approved, would also require Neiman Marcus to train employees on pricing practices and to post clearer disclosures on what its comparison prices mean.
The proposed class action centered around Neiman Marcus's Last Call outlet store price tags. The class action plaintiff alleged that the outlet's tags showed a markedly lower price versus a "Compared to" price, and that consumers were encouraged to think that this "Compared to" price represented the price that the exact same product was sold at the traditional Neiman Marcus flagship retail store. Instead, the plaintiff alleged, items sold at the outlet were actually manufactured strictly for sale at the Last Call stores, were of inferior grade and quality, and thus the insinuated "Compared to" discount was illusory, false and misleading.
This is the newest in the long line "Compare to" deceptive pricing cases hitting the outlet space, including against Nordstrom, Burberry and Ralph Lauren.
We'll keep you updated as the settlement process continues.
The case is Linda Rubenstein v. The Neiman Marcus Group LLC et al., case number 2:14-cv-07155, in the U.S. District Court for the Central District of California.
Neiman Marcus does not admit liability to any of the class action lawsuit allegations and the plaintiff says that damages to Class Members likely total in the hundreds of millions....
Class Members will include all persons who purchased products from Neiman Marcus Last Call stores in California labeled with a "compared to" price. Each Class Member will be provided points based on their purchases that will determine the payment they receive from the Neiman Marcus class action settlement.
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