LONDON – Online fashion retailer Boohoo is facing a US$100m (£81 million) lawsuit in the US over allegations it misled shoppers with ‘sham sales’. The UK-based Telegraph reports that lawyers from Almadani Law and AI Law in California have filed a civil claim against the British retailer which include allegations it engaged in false pricing through fake sales and promotions.
Lawyers allege Boohoo ran “sham sales” with discounts on “fake” original prices which were never or almost never the original prices.
In the UK, if products are on sale, a retailer is obliged to show the previous price and should have been selling at that price for a meaningful period of time. A retailer also cannot claim they are selling at an introductory price if they plan to continue selling at that price indefinitely, or to stop selling the product after the introductory period.
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