Fashion Law: Nike Under Fire for Misleading Outlet Prices
Nike is no stranger to lawsuits however, the fitness mogul is typically not the one being sued, until now. In recent news, Nike is now being sued for $5 million related to allegations that the athletic wear giant deceived customers by incorrectly labeling and marketing many of its good sold at outlet stores.
The lawsuit, filed on Monday in US District Court states: “Nike misrepresented the existence, nature and amount of price discounts on products sold in Nike Outlet stores by purporting to offer discounts off of a false ‘Suggested Retail Price,’ which the Plaintiff understood to be short for the commonly used retail phrase: Manufacturer’s Suggested Retail Price (MSRP).”
The lawsuit further claims the retailer “led consumers to believe that its MSRPs represented authentic price information about the products they purchased. In reality, Nike manufactures the Nike Outlet Products for exclusive sale at its Nike Outlets and always sells these goods for the advertised “OUR PRICE,” never the MSRP.”
Nike failed to comment.
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