Zara sued for deceptive prices

Spanish fashion chain Zara is getting sued in the United States because of allegedly misleading prices. American Devin Rose filed the class action suit and wants 5 million dollars (4.4 million euro) in damages.

Zara denies

Rose says Zara often only displays prices in euro, while the pricing in the United States is often up to 50 dollars higher. “Behind its façade of attainable elegance, Zara is engaged in a widespread practice of deceiving American consumers through a classic bait and switch”, Rose said. “

 Rose klaagt dat Zara op de prijskaartjes vaak enkel de prijs in euro weergeeft, terwijl de prijzen in de Verenigde Staten tot soms 50 dollar hoger zijn. “Achter de facade van bereikbare elegantie is Zara betrokken bij een grootschalig bedrog van Amerikaanse consumenten door het toepassen van de klassieke bait and switch tactiek”, zegt Rose. “The prices that consumers are ultimately quoted —  prices that are only revealed when the items have been already been scanned and the consumer is asked for payment — are not accurate American dollar equivalents to the euro prices on the tags, but rather arbitrarily inflated amounts that are substantially higher.”

Zara categorically denies all allegations: “Zara USA vehemently denies any allegations that the company engages in deceptive pricing practices in the United States. While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers”, a spokesperson told FashionUnited UK.

The law states retailers have to offer the lowest indicated price, but the courts will now have to judge whether Zara has crossed the line.