Loft & Ann Taylor Class Action: False Discounts at Outlet Stores?

Case Overview: A class action lawsuit accuses Loft and Ann Taylor outlet stores of using fabricated "original" prices to create the illusion of substantial discounts, misleading consumers into overpaying for products.

Who's Impacted: Oregon consumers who purchased products from Ann Taylor Factory Stores or LOFT Outlets at advertised discounted prices.

Court: U.S. District Court for the District of Oregon.

Outlet stores for Loft and Ann Taylor fashion brands used fabricated "original" prices to create the illusion of substantial discounts on their products, a new class action lawsuit alleges.

Deborah O’Dea filed a class action lawsuit against Premium Brands Opco LLC — the owner of the Ann Taylor brands —  in an Oregon federal court, accusing the company of violating state and federal consumer protection laws through false discount advertising. 

The lawsuit, filed on July 11, claims that Premium Brands Opco deceived consumers by advertising false price discounts at Ann Taylor Factory Stores and LOFT Outlet stores.

False discounts at Loft and Ann Taylor outlets alleged in lawsuit

O’Dea's alleges Ann Taylor Factory and LOFT Outlet stores used fabricated "original" prices to create the illusion of substantial discounts. 

This practice, known as false reference pricing, misleads consumers into believing they are getting a deal on products that have a higher market value than they actually do. By advertising discounts from inflated "original" prices, the lawsuit claims, the company manipulated consumers' perceptions of value and induced them to overpay for items.

The lawsuit alleges that this deceptive practice harms consumers in multiple ways. Not only do they fail to receive the promised discount, but they also end up paying a premium for products that would otherwise be sold at lower prices. 

Consumer claims deceptive pricing led to overpaying for merchandise

O’Dea says she went shopping in Nov. 2023 for some new clothes at a LOFT Outlet store in Oregon. While there, she bought a dress that was advertised at a 25% discount, down to $63.74.

She says she browsed several items before deciding on what item to buy, and chose the dress after seeing the advertised sale price, believing she was “receiving a significant discount on the dress.” 

“Her belief that the discounted price on the item was limited and would not last was material and integral to her purchase decision,” the lawsuit states. O’Dea said she wouldn’t have bought the dress if she knew she wasn’t really getting a bargain.

Class action seeks damages and end to misleading advertising

According to O’Dea, Premium Brands Opco's actions violated Oregon’s Unlawful Trade Practices Act and the Federal Trade Commission Act. 

She is looking to represent anyone in Oregon who bought products from Ann Taylor Factory Stores or LOFT Outlets at discounts from advertised reference prices.

O’Dea is seeking certification of the class action, damages, fees, costs and a jury trial. She also seeks an order preventing the company from advertising the clothes with false discounts.

JC Penney was hit with a similar lawsuit in March alleging it falsely created the appearance of bargains by marking items as being on sale when in reality the company hadn’t intended on selling them for the original listed price. 

Case Details

• Lawsuit: O’Dea v. Premium Brands Opco LLC
• Case Number: 3:24-cv-01134-JR  
• Court: U.S. District Court for the District of Oregon

Plaintiffs' Attorneys

• Kim D. Stephens and Joan M. Pradhan (Tousley Brain Stephens PLLC)
• Todd D. Carpenter, Scott G. Braden and James B. Drimmer  (Lynch Carpenter LLP)

Have you shopped at an Ann Taylor Factory or LOFT Outlet store? What was your experience with the discounts like? Let us know in the comments!