Avenue Faces California Class Action Over Phantom Markdowns and Deceptive Discounts in 2025

Scheme Her attorneys, Scott J. Ferrell and Victoria C. Knowles of Pacific Trial Attorneys APC, monitored Avenue.com and “confirmed that the product was not offered for sale at the reference price during the relevant period”.

The complaint asserts that Avenue.com is aware that the prices for its products are fake and artificially inflated, and intentionally uses them in a deceptive pricing scheme to increase sales and profits by misleading consumers into believing they are buying products at a substantial discount.

The Law: California’s Consumer Protections This litigation draws on California’s False Advertising Law and Unfair Competition Law, which require reference or former prices to reflect the true market price for at least three months before the sale. Violations risk state and federal penalties.

Other brands, such as Ann Taylor, Ralph Lauren, Michael Kors, and Akira, have faced similar suits and had to change their pricing strategies or settle for millions. The recent wave of lawsuits in California, Oregon, New York, and across the U.S. demonstrates a move for industry-wide reform…