Three online shopping platforms, BooHoo (including BooHooMAN), PrettyLittleThing, and Nasty Gal, have agreed to pay a settlement to the tune of $4.75M over a class action lawsuit.
The settlement benefits go to individuals in California who made purchases on the BooHoo site since April 9, 2016; the PrettyLittleThing site since May 19, 2016; and the Nasty Gal site since March 1, 2017.
The lawsuit alleges that reference prices on the online sales platforms were not original, regular, retail or former prices. Instead, the websites’ reference prices were intentionally inflated to trick customers into thinking they were getting a good deal.
The vocabulary in one of the lawsuit claims reads in part, “As a result, customers are deceived into spending money they otherwise would not have spent, purchasing items they otherwise would not have purchased, and/or spending more money for an item than they otherwise would have absent the deceptive marketing.”
The lawsuit claims that the websites violate California’s consumer protection laws, and although none of the companies have admitted to wrongdoing, they have agreed to the settlement.