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Home » Deceptive Ads Can Lead to Legal Trouble for California Retailers, Court Rules

Deceptive Ads Can Lead to Legal Trouble for California Retailers, Court Rules

May 24, 2013
Los Angeles Times

A federal appeals court Tuesday revived a potential class-action lawsuit alleging that Kohl's Department Stores Inc. misstated in advertising that items had been marked down.

The U.S. 9th Circuit Court of Appeals said California consumer laws permit such lawsuits if the customer would not have made the purchase but for the perceived bargain.

"Price advertisements matter," Judge Stephen Reinhardt wrote for a three-judge panel. "When a consumer purchases merchandise on the basis of false price information and when the consumer alleges that he would not have made the purchase but for the misrepresentation, he has standing to sue."

Kohl's has denied the underlying allegations that its ads were false or misleading.

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KEYWORDS Business Strategy Alignment deceptive retail advertising Global Supply Chain Management Los Angeles Times Pharmaceutical/Biotech Regulation & Compliance Retail retail marketing retail supply chain SC Security & Risk Mgmt Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Retail Value chain
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