
Discounts on New York and Company’s Website
Allegations: Misleadingly advertising discounts from artificially inflated reference prices
December 2016: A federal judge dismissed this action finding that plaintiffs failed to meet the heightened pleading standard required for fraud-based claims and lacked standing. Some of the claims were dismissed with leave to amend while one claim was dismissed without leave to amend.
February 2016: A class-action lawsuit was filed against New York & Company Stores for allegedly misleadingly advertising discounts by comparing sale prices to false market prices. Specifically, the complaint alleges that the market prices were artificially inflated and were never the original prices for the products. In addition, the complaint alleges that the market prices were not the prevailing market prices within the three months immediately before the advertisement, as required by California law. (Rael et al v. New York & Company, Inc., New York & Company Stores, Inc., and Does 1-50, Case No. 16-cv-369, S. D. CA.)
For more information about misleadingly advertised discounts and TINA.org’s coverage of the issue, click here.
Allegations: Misleadingly advertising discounts from artificially inflated reference prices
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