RE: Class action settlement24 Apr 2024 18:47
X
Skip to main content
Click to expand the Mega Menu
Sourcingjournal
HOME
TOPICS
BUSINESS
Boohoo Agrees to Final Settlement of Class-Action Suit Alleging Bogus Discounts
BY KATE NISHIMURA
Plus Icon
APRIL 24, 2024 11:00AM
Share this article on Linkedin
Share this article on Facebook
Share this article on Flipboard
Print this article
Boohoo has agreed to a final settlement of a class-action lawsuit brought by U.S. shoppers.
BOOHOO HAS AGREED TO A FINAL SETTLEMENT OF A CLASS-ACTION LAWSUIT BROUGHT BY U.S. SHOPPERS. JUSTIN TALLIS / GETTY IMAGES
Boohoo has reportedly reached a final settlement in a protracted class action lawsuit brought by American consumers who claim that the British fast fashion firm employed false and deceptive pricing practices to drive sales.
Plaintiffs Laura Habberfield, Keona Kalu, Katie Runnells, Juanita Carmet Cachadina, Sarah Huebner, Yesenia Valiente, Veronica Walton, Lisa Murphy, Nicole Hill and Nicole Stewart filed the class action complaint against Boohoo on June 22, 2022, alleging that the brand’s global e-commerce sites, along with owned entities like PrettyLittleThing and Nasty Gal, advertised “fake and inflated comparison reference prices to deceive customers into a false belief that the sale price is a deeply discounted bargain price.”
The suit said that shoppers who visit Boohoo’s site during one of its blowout 50-percent-off sales and purchase a dress “on sale” for $20 based on a crossed-out reference price of $40 are being bamboozled. “This is deception because that dress has rarely, if ever, been sold in the recent past on the site for $40,” the suit said. In other words, Boohoo’s sales “aren’t really sales at all,” it added—“They are a scam.”
According to the complaint, the defendants engaged in the “deceptive advertising and pricing scheme” in order to “lure unsuspecting customers into jumping at a fake ‘bargain.’” As a result, the plaintiffs argued they were swindled into shelling out on items they wouldn’t have otherwise purchased.
RELATED STORIES
Boohoo Group has expanded its partnership with Bloomreach to enable AI-powered search and personalization.
TOPICS
Byte-Sized AI: Boohoo Uses AI for Search; Best Buy x Google Cloud; Manufacturing Startup Secures Millions
In the lawsuit, former employees are accusing Yellow of failing to deliver a timely WARN notice ahead of the LTL’s bankruptcy and shutdown.
TOPICS
Ex-Yellow Employees Get Court Go-Ahead to Continue Class-Action Suit
Reuters reported this week that the fast-fashion e-tailer confirmed that the settlement—which was agreed upon in preliminary terms in November—was finalized last Tuesday. Boohoo said it would “move forward without admission of liability and within its existing legal provisions,” which amounted to 17.8 million pounds ($22.4 million) as of Feb. 28, the outlet said.
According to the final settlement agreement, each of the named plaintiffs
Sign In
Follow the stocks
