Fashion Nova‘s the target of a proposed class action alleging it uses deceptive pricing practices to incentivize consumers to purchase items it offers for sale.
The proposed class action, filed in a Washington federal court on April 2, comes from five consumers: Evelyn Hernandez, Kenita Hearne, Selena Flores, Brianna Clark and Aliz Holly. The plaintiffs are based in Washington, California and Oregon.
The plaintiffs allege that Fashion Nova’s website “creates an illusion that customers are receiving a limited-time discount,” when, they contend, in reality, the regular prices and sale prices are inflated to lead consumers to believe they are receiving greater discounts than they truly are.
They further allege that “Fashion Nova’s products are always on sale on its website, and these sales persist. For example, Fashion Nova has prominently displayed, for over a year on its website, sales that are designed to induce consumers to purchase its products under the mistaken belief they are getting a significant bargain.”
Hernandez, Hearne, Flores, Clark and Holly argue that if a sale truly offered consumers a valuable discount, there would be no such issue. But by allegedly perpetuating “fake” sales, they argue, Fashion Nova has induced consumers to “overpay” for the goods they purchased.
“While there is nothing wrong with a legitimate sale, a fake one—that is, one with made-up regular prices, made-up discounts and made-up expirations—is deceptive and illegal,” the plaintiffs state in their complaint.
The plaintiffs also note that consumers are more likely to make a purchase when they are presented with a discount, and that consumers adopt a particular “sense of urgency” when they think a sale or offer expires in the immediate near term.
The complaint brings up Fashion Nova’s previous legal squabbles with the Federal Trade Commission (FTC).
In 2020, the FTC brought a complaint alleging that the fast-fashion company violated consumer laws by failing to notify consumers or allow consumers to cancel orders when shipping speeds weren’t as promised. It also alleged Fashion Nova illegally compensated consumers with gift cards rather than refunds. Those allegations saw Fashion Nova paying a $9.3 million settlement to the FTC, $6.5 million of which was distributed to consumers.
And in 2022, the FTC brought a second complaint against Fashion Nova, alleging that it had intentionally blocked or suppressed negative reviews on its products. The company paid a $4.2 million settlement to the FTC in that case, and the agency distributed $2.4 million of that to the afflicted consumers.
“Despite these charges, Fashion Nova has continued its practice of making misleading representations about its products and prices,” the complaint alleges, in reference to the purported price deception perpetuated by the Los Angeles-based company.
All five plaintiffs allege they purchased clothing from Fashion Nova that they “would not have purchased…if [they] knew that Fashion Nova products were not discounted as advertised, and that [they were] not receiving a product with the advertised value and/or market price.”
The five plaintiffs have accused Fashion Nova of violating consumer-focused laws in Oregon, California and Washington, as well as breaching consumer contracts among other alleged offenses. In return, they seek damages and an injunction preventing such conduct from Fashion Nova in the future.
But first, they must convince a judge to certify the case as a class action. The proposed class would include all people throughout the U.S. who “purchased one or more Fashion Nova products advertised at a discount on defendant’s website” before March 29, 2024. Their request also includes subclasses for Washington, California and Oregon.
Fashion Nova is far from the first brand or retailer to face a proposed class action over discounting issues; Old Navy, Under Armour and others have received similar complaints.
Fashion Nova did not return Sourcing Journal’s request for comment on the lawsuit.
