OnPoint Experts’ “Deceptive Pricing” Article Published by Law360
September 26, 2017
OnPoint Experts Steve Hamilton and Dan Werner recently published an article in Law360 on the recent surge in “deceptive pricing” litigations and the challenges faced by experts when calculating damages in these cases. “Fictitious pricing,” “false advertising” and “phantom markdowns” are among the deceptive schemes that major retailers have allegedly engaged in to create the illusion that consumers are receiving a higher-quality product at a discounted price. In such instances, “compare at” prices mislead consumers into believing they are receiving a bargain, yet it turns out that such products are never sold at their “regular” or “full price.” Another misleading tactic involves manufacturing discounted products for outlet stores that are never sold in regular stores. Such deceptive acts typically result in greater revenues for retail companies at the expense of the consumer, who may have never considered purchasing the product at its actual price in the first place, if it were not for the misleading “sale.”
Best Buy, Amazon, J.C. Penney, Kohl’s, and Nordstrom are a few of the many well-known retailers who have allegedly engaged in deceptive pricing schemes. A number of methodologies have been offered for calculating damages, all of which Dr. Hamilton and Dr. Werner discuss at length, as well as new methodologies they believe will survive scrutiny by the courts. To read the article, please click here.