Michael Kors recently agreed to a settlement in the lawsuit brought against the company last July over deceptive pricing techniques. Tressa Gattinella claimed in her lawsuit that Michael Kors engaged in deceptive pricing practices in regards to the products sold in its outlet stores. In particular, Gattinella claimed that the brand created the illusion of a discount where there actually was none.
Michael Kors Spring/Summer 2014 Show. Image: Christopher Macsurak via flickr.com
For example, she purchased a pair of jeans that had a price tag stating that the MSRP (Manufacturer Suggested Retail Price) was $120 but that the jeans were being sold for the low price of $79.99, leading Gattinella to believe that she was saving money. However, because the brand produces products specifically for its discount stores, by signifying a “discount” price, the brand is misleading its customers into thinking that they are purchasing products at a discount when in actuality they are not.