A $200 shoe on sale for only $100? Nike Outlet discounts can seem too good to pass up. A class action filed in Portland, Oregon, claims that Nike misleads its outlet customers into thinking they are getting a great deal when, in fact, they are paying the normal price.
Price tags on items sold at Nike Outlet stores list both the Manufacturer’s Suggested Retail Price (MSRP) and the steeply discounted “Our Price.” The lawsuit claims that “Nike led consumers to believe that its MSRPs represented authentic price information about the products they purchased. In reality, Nike manufactures the Nike Outlet Products for exclusive sale at its Nike Outlets and always sells these goods for the advertised ‘OUR PRICE,’ never the MSRP.” The plaintiffs are seeking $5 million — Nike has not yet responded to the complaint.
Keep this case in mind next time your company uses advertised discounts as a marketing tool. Make sure you are setting yourself up for good press and happy customers — not a lawsuit.
For more information, including a copy of the complaint, go to the local Portland news site.