British luxury fashion brand Burberry is facing a class action lawsuit in the United States. The company is accused of using misleading price tags at its outlets stores to fool shoppers into believing they were getting big bargains.
The company is specifically using its outlet stores to present false price information about products that never sold in its regular retail locations.
Outlet stores typically sell excess or old stock at a discount, although some retailers also manufacture goods specifically for those locations.
Burberry joins a growing lineup of luxury retailers who have been accused of marking up the price of goods sold in outlet stores while providing made-up manufacturer prices.
In 2015, Michael Kors paid $4.88 million and changed its sales practices following a similar class action lawsuit. Kors was accused of developing the “illusion” of deep discounts that never really existed in the first place.
Burberry’s general counsel is not commenting on the class action lawsuit at this time.