A class action lawsuit has been filed against The Liquidation Channel alleging that the home shopping network engages in false price advertising of the estimated retail value of products it sells. The Liquidation Channel Class Action seeks a court order preventing the company from further “fraud” and “deceptive trade practices,” as well as compensatory and punitive damages against the company to compensate customers for losses and deter similar practices in the future.
If you want more information about the Liquidation Channel Class Action, or if you have purchased a product from The Liquidation Channel and would like more information about your options, contact Attorney Group. We provide free, no-obligation consultations and can help answer your questions. If you choose to pursue a claim, we can connect you with an affiliated attorney who can assist you throughout the legal process. The time to file a lawsuit is limited, so contact us today.
Claim: False Advertising Scheme is “Pervasive”
The lawsuit not only claims that The Liquidation Channel engages in a false price advertising scheme that is “pervasive across all its product lines,” but also that the heart of the company’s marketing plan “is to deceive the public by claiming that it consistently offers significantly lower prices than its competitors.” The allegations are based on the manner in which The Liquidation Channel promotes its discounts off of the “estimated retail value” of a product.
The company allegedly misrepresents the estimated retail value in order to overstate the amount of the discount applied to the price of a given product. Instead of basing the estimated retail value on the prevailing free market price of a product, the lawsuit claims that The Liquidation Channel “fabricates” an estimated retail value in order to falsely convey the impression “of considerable savings for its customers.”
Estimated Retail Values are Deceptive, According to Complaint
The Liquidation Channel Class Action claims that estimated retail values given to products violate Federal Trade Commission guidelines, and are therefore deceptive, on the basis that:
To the extent that list or suggested retail prices do not in fact correspond to prices at which a substantial number of sales of the article in question are made, the advertisement of a reduction may mislead the consumer.
[I]f the list price is significantly in excess of the highest price at which substantial sales in the trade area are made, there is a clear and serious danger of the consumer being misled by an advertised reduction from this price.
The complaint also asserts that promoting an artificially high estimated retail value amounts to false advertising, intentional and negligent misrepresentation, unjust enrichment, unfair competition, and a violation of consumer law.
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If you want more information about the Liquidation Channel Class Action, or if you think you have been a victim of false advertising and want to learn more about your options, contact Attorney Group today. Our consultations are free, confidential and without obligation on your part. If you choose to pursue a claim, we can connect you with an affiliated attorney. The time to pursue a claim is limited so contact us today.