Discounts at Kohl’s Stores

November 2018: The Ninth Circuit Court of Appeals affirmed the district court’s approval of the settlement agreement.

October and November 2016: Several objectors filed Notices of Appeal regarding the final approval of the settlement. To read them, click on the links below.

September 2016: A federal judge granted final approval of the settlement, which was amended in April 2016 to say that the gift card credits are not redeemable for cash, except where required by law.

April 2016: A federal judge preliminarily approved a settlement of this action. According to the proposed settlement terms, class members will receive a portion of the $6.15 million settlement fund in the form of Kohl’s gift card credits after other expenses (including approximately $1.5 million in attorneys’ fees, as well as administrative costs and awards to class representatives) are paid. The amount of Gift Card Credits each class member receives is estimated to be $20 or more. In addition, Kohl’s agreed that its comparative advertising and pricing practices will no longer violate federal or California state law. The settlement agreement also states that Kohl’s will enhance and expand programs to promote pricing compliance with legal requirements, such as developing and using enhanced pricing compliance computer systems and regularly offering appropriate training on pricing compliance and price-comparison advertising to employees for 4 years. The final approval hearing is scheduled for September 12, 2016.

June 2015: A class-action lawsuit was filed against Kohl’s for allegedly falsely advertising the existence, nature, and amount of discounts. Specifically, the complaint alleges that the stores offer specific percentage and dollar discounts from “original” or “regular” retail prices when, according to plaintiffs, these retail prices were false and were not the prevailing market price within the three months immediately before the advertisement, as required by California law. (Russell et al v. Kohl’s Department Stores, Inc. and Does 1-100, Case No. 15-cv-1143, C. D. CA.)

For more information about other class-action lawsuits regarding the advertising of discounts and TINA.org’s coverage of the topic, click here.