Michael Kors has agreed to settle a misleading discounts class action that accused its outlet stores of advertising fake original prices and inflated markdowns on apparel, handbags, shoes, and accessories. The settlement, which is now closed to new claims, offers eligible shoppers a merchandise certificate worth up to $30 for use at Michael Kors outlet locations.
What the Lawsuit Claimed
The lawsuit alleged that Michael Kors outlet stores used deceptive reference pricing by showing items with a higher original or compare at price and a lower sale price, even though the products were never actually sold at the higher price. Plaintiffs said this created the false impression of a steep discount and led customers to believe they were getting a bargain, when in reality they were paying what was effectively the regular outlet price.
Michael Kors did not admit any wrongdoing as part of the settlement, but agreed to resolve the case and provide compensation rather than continue litigating. The settlement applies only to outlet stores, not to full price boutiques or other channels, reflecting how heavily outlet pricing and signage rely on compare at and ticketed price strategies.
Who was Eligible
The settlement covers individuals who made a qualifying purchase at a Michael Kors outlet store between May 10, 2019, and November 14, 2025. Shoppers did not need to show that they relied on any specific sign or tag; they only needed to show that they bought merchandise during the class period at an outlet location where the alleged misleading discounts appeared.
Within the broader class, California and Oregon KORSVIP members who made qualifying purchases at outlet stores in those states were treated as authorized claimants and automatically received certificates via email if they did nothing. Other customers nationwide were required to submit a claim form and provide either a KORSVIP account number or a receipt showing a qualifying purchase.
What Class Members Received
Under the settlement terms, class members receive a merchandise certificate that can be used at Michael Kors outlet stores, with each certificate valued at up to $30. These certificates function as store credits for future purchases rather than cash payouts, a common structure in retail pricing settlements where alleged harm is linked to perceived discount value rather than complete product worth.
For California and Oregon KORSVIP authorized claimants, the process is largely automatic: if they fell within the defined group and did nothing, the settlement provides that their certificates would be delivered via email. All other class members had to actively file a claim by the March 6, 2026, deadline to receive their award.
Key Deadlines and Case Details
The deadline to submit a claim form or opt out and object was March 6, 2026, and the final approval hearing is scheduled for March 27, 2026, in the Superior Court of California, County of San Diego. The case is captioned McCall et al. v. Michael Kors USA Inc., Case No. 25CU041352N.
Class members can find additional details, FAQs, and claim information on the official settlement website, MichaelKorsOutletSettlement2026.com, which is administered by Simpluris. According to the settlement notice, Lynch Carpenter LLP serves as class counsel, while Kelley Drye & Warren LLP represents Michael Kors.
Why This Matters for Outlet and Discount Retail
The Michael Kors settlement is part of a broader pattern of litigation targeting misleading discount and outlet pricing across fashion and retail, where compare at prices or inflated original tags are alleged to exaggerate savings. While Michael Kors has not admitted liability, the decision to settle and offer $30 in merchandise certificates to a large class underscores the growing legal and reputational risks associated with aggressive promotional framing, especially in outlet environments.
For brands, the case reinforces the need to ensure that the original and reference prices used in discount messaging are tied to actual, recent prices charged in the marketplace. For shoppers, it serves as a reminder to treat dramatic outlet markdowns with skepticism and to recognize that a sale tag does not always mean a genuine discount off a true regular price.
