Court Revives False Ad Claims Against Neiman Marcus
Ninth Circuit Revives False Ad Claims Against Neiman Marcus
The Ninth Circuit ruled that Neiman Marcus will have to answer accusations that it tricks customers into believing it sells the same upscale clothing at its Last Call outlets that it does at its flagship stores.
A three-judge panel remanded the putative class action to U.S. District Court in Los Angeles, finding that lead plaintiff Linda Rubenstein plausibly alleged claims under California’s False Advertising Law, Consumer Legal Remedies Act and Unfair Competition Law.
Rubenstein sued Neiman Marcus in Los Angeles Superior Court in August 2014, claiming it attaches “Compared To” price tags to the clothing it sells at its Last Call stores to make customers believe they are buying authentic Neiman Marcus clothing once sold at a its retail stores.
In reality, Rubenstein said, the clothing sold at Last Call is of inferior quality, and is never sold at Neiman Marcus’s retail stores.
The panel found that Rubenstein had sufficiently alleged her false advertising and unfair business practices claims by showing that Neiman Marcus may have made misleading statements about its Last Call merchandise and discounts.
And it said that Rubenstein had sufficiently alleged her unfair competition claim by showing that neither Neiman Marcus nor nearby retailers sold comparable products at the “Compared To” price at the time that she made her purchases at Last Call.
Read full article and learn more about Deceptive Advertising here.
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