In late December, Old Navy LLC settled a $340 million class action lawsuit against the company, a move that has highlighted the pitfalls of deceptive pricing. While some courts have turned against deceptive pricing suits, this one may prove to be a boon to retailers. The settlement is intended to reward consumers with a $5 voucher, which can be used at any Old Navy store or online. The terms of the settlement are not yet clear, but a court date of March 2022 is being scheduled.
The lawsuit alleges that Old Navy, through its website, deceived consumers by using false or misleading prices for its merchandise. The company also deceived customers by offering them “original” prices and discount prices that were too low to be true. The Old Navy class action settlement was announced in December 2016 after Anna Nemykina visited the Old Navy website and purchased a sweater for a fraction of its actual price. The store denied the allegations, but the court found that the clothing company violated federal laws.
In response to the lawsuit, Old Navy has agreed to issue refunds to Class Members. To get the refund, Class Members must have purchased at least one item in the company. They may file a claim online or mail their claim. Alternatively, Old Navy may offer Settlement Purchase Certificates to Class Members. These are redeemable for purchases in Old Navy stores or Old Navy Outlet stores, and the amount of these vouchers depends on the Class Member’s Qualifying Purchases.