Class Action Claims JCPenney Duped Customers With Phony Price Cuts

Case Overview: A class action lawsuit says JCPenney tricked shoppers with inflated prices, fake discounts, and misleading “free” deals.

Consumers Affected: Washington shoppers who received JCPenney’s promotional emails.

Court: Superior Court of the State of Washington for King County

Retailer JCPenney is under fire for allegedly misleading customers through email promotions and in-store marketing that promised steep discounts and free offers. A newly filed class action lawsuit claims the company inflated reference prices to make everyday sales appear more attractive than they actually were.

Plaintiff Julie Arcand accuses JCPenney of violating Washington state consumer protection laws by advertising products at “false higher list prices” and then applying discounts of 25% to 70%. 

According to the lawsuit, the majority of merchandise was never sold at the higher price, making the markdowns an illusion rather than genuine savings.

Shoppers Say JCPenney Marked Up Prices Before Applying “Discounts”

The lawsuit also targets JCPenney’s use of “Buy One, Get One Free” and “Buy One, Get Two Free” promotions. Arcand alleges that these offers were not actually free at all because the company raised the price of the initial item to cover the cost of the additional product.

By structuring promotions this way, JCPenney allegedly recouped all or more than the value of the free merchandise, leaving consumers with no actual savings. “The free offer is illusory, and the consumer is not getting any deal at all,” the complaint states.

“Free” BOGO Deals Allegedly Just Covered by Higher Base Prices

Another issue raised in the complaint is JCPenney’s use of time-limited sale language. The lawsuit alleges that banners, emails, and in-store signage claimed discounts were available for a limited time only. In practice, Arcand contends, the promotions were continuous and never-ending, making the urgency messaging misleading.

The class action states: “JCPenney also falsely advertises that the discounts are for a limited time, when in fact the advertised savings are perpetual and never-ending.”

JCPenney and Other Retailers Previously Accused of Fake Discounts

This case is not the first time JCPenney has been accused of creating the illusion of bargains. A previous lawsuit filed in 2024 claimed the retailer marked up prices and then applied discounts, giving shoppers the impression of savings that never existed.

The lawsuit echoes similar claims faced by other retailers. Earlier this month, Hollister was sued for allegedly advertising inflated reference prices on its website. Plaintiffs in that case argue the retailer displayed fake original prices alongside “discounted” numbers to create the illusion of deals, a tactic prohibited under California law.

In the JCPenney’s deceptive discounts class action lawsuit, Arcand brings her claims under the Washington Consumer Protection Act and the Washington Commercial Electronic Mail Act. She argues that JCPenney’s emails misled recipients by including subject lines that advertised inflated discounts or “free” deals.

The lawsuit requests declaratory and injunctive relief, which would bar JCPenney from continuing to market in this manner. It also seeks statutory damages of $500 for each misleading commercial email received by Washington residents.

Arcand has demanded a jury trial, aiming to represent a class of Washington state consumers who received JCPenney marketing emails that contained either a percentage-off statement or an offer of free merchandise.

Case Details

• Lawsuit: Arcand v. Catalyst Brands LLC
• Case Number: 2:25-cv-01445
• Court: Superior Court of the State of Washington for King County

Plaintiffs' Attorney:

• Daniel M. Hattis and Che Corrington (Hattis Lukacs & Corrington)

Have you shopped JCPenney’s sales or BOGO deals? Did the discounts feel real or misleading? Share your experience in the comments.