Zara faces a $5 million lawsuit over claims that the international clothing giant is scamming US customers into paying more than they should for clothes.
The lawsuit was filed by Devin Rose in the United States District Court for the Central District of California. According to sources, the lawsuit alleges that the brand’s US stores are employing a classic ‘bait and switch’ scheme which equates their ‘deceptive prices’.
“Zara marks the price tags on many of its products with only a euro price. Since the euro is a larger unit of currency than the American dollar, these euro prices lead shoppers in the United States to believe that Zara’s products are less expensive than they actually are”, says 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”.
Rose filed the lawsuit after purchasing three shirts from a Zara retail store in Sherman Oaks, California on 17 May. He claims that at the time that he made his purchases, “the actual euro:dollar exchange rate would have resulted in the €9.95 shirts costing approximately $11.26 each”. Instead, however, Rose paid $17.90 per garment, a mark-up of nearly 60%.
Zara have since responded by issuing a defending statement.
“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.
“We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defence in due course through the legal process”.