T.J.Maxx Faces Lawsuit About Misleading Prices

Two T.J.Maxx customers are suing the clothing retailer after examining the chain’s “compare at” price tags, which they say show the firm “basically guesses” the full retail value of items marked.

In a Tuesday (July 21) article, the site Racked, in turn citing Law360, reported that the two customers have filed suit against T.J.Maxx in California federal court for misleading consumers into thinking they were in fact getting better prices than was the case in reality. The two customers, identified as Staci Chester and Daniel Friedman, compared prices on the tag with the values listed as “full retail” numbers and, according to Racked, “assumed, as most people do,” that the latter reflected true retail values. But after what was termed “plenty of digging” on the company’s website, the pair found that the “compare at” prices may not have been rooted in fact but were instead “estimates that T.J.Maxx’s buying staff personally” calculated.

“After reading T.J.Maxx’s interpretation of their ‘compare at’ pricing, I really don’t know what that price is, or where they came up with it … It appears that it’s just there to make me feel good about my purchase,” Christopher Morosoff, the duo’s lawyer, said in an interview with Law360. “In general, we think they need to be more clear about what their ‘compare at’ price is, and where they came up with it.”

The attorney said in the interview that customers typically expect T.J.Maxx merchandise to be between 20 percent to 60 percent less than prices to be paid at full retail.

And, according to the article filed by Racked earlier this week, the lawsuit claims that potentially “hundreds of thousands” of shoppers in California have been misled by the T.J.Maxx price tags.

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