Under Armour Faces New Class Action Alleging Misleading Discount Practices at Factory Outlets
Under Armour is again under legal scrutiny, this time facing a proposed class-action lawsuit accusing the sportswear giant of employing a “false, misleading and deceptive pricing scheme” in its Factory outlet stores and website, according to Lawyer Monthly. Filed by New York resident Linda Rappaport in the Eastern District Court on October 29, the complaint alleges that Under Armour intentionally misleads customers by advertising discounts on merchandise produced specifically for its outlet stores, where it is sold at allegedly “inflated” reference prices.
According to the complaint, Under Armour manufactures products exclusively for its outlet locations and online factory store, items purported to be of lesser quality than those sold in its standard retail stores. The lawsuit claims that these products, advertised with “original” or “MSRP” (manufacturer’s suggested retail price) tags, were never sold at these higher prices. Rappaport contends that this creates a false impression of “huge savings and high value” through discounts that, in reality, are misleading.
In her filing, Rappaport argues that customers are led to believe they are buying discounted items from Under Armour’s main line. Instead, they are purchasing products that were never available at those “original” prices, nor in regular Under Armour stores. “The Under Armour Factory products sold in both the brick-and-mortar Under Armour Factory stores and [on the outlet site] are never—or virtually never—offered for sale or actually sold at their ‘original’ or ‘price tag’ prices,” the complaint states. This, Rappaport claims, makes the “discounts” fraudulent and is used to entice customers to spend more than the items are worth.
The complaint alleges that Under Armour’s pricing practices violate the New York False Advertising Law and the New York Consumer Protection from Deceptive Acts and Practices Act. Rappaport’s legal team is seeking to represent “hundreds of thousands of individuals” in New York who purchased items from Under Armour Factory outlets during the specified timeframe, claiming these consumers were misled by deceptive pricing tactics.
Rappaport’s lawsuit requests a jury trial and seeks a range of damages, including declaratory and injunctive relief, along with punitive and statutory damages for herself and all affected class members. This legal move echoes a similar class action suit against Under Armour in 2020, which also alleged deceptive pricing practices by inflating “original prices” on discounted items in its outlet stores, suggesting shoppers were receiving significant savings.
As Under Armour navigates these renewed legal challenges, this class action suit underscores ongoing concerns around retail pricing practices and transparency, with consumers increasingly scrutinizing the accuracy of advertised discounts.