Under Armour Class Action: Company Accused of Advertising Fake Discounts

Case Overview: A class action lawsuit claims Under Armour misled consumers with deceptive pricing practices, using inflated "original" prices to create the illusion of significant discounts.

Consumers Affected: Consumers in New York who purchased products from Under Armour factory outlet stores at a discount from an advertised reference price.

Court: U.S. District Court for the Eastern District of New York

Under Armour, Inc. is facing a class action lawsuit that accuses the athletic apparel giant of misleading customers with deceptive pricing practices at its factory outlet stores and online. 

Filed by Linda Rappaport in a New York federal court, the case claims Under Armour falsely inflated "original" prices to make discounts appear more significant, tricking shoppers into believing they were getting a bargain.

Rappaport alleges that Under Armour used deceptive pricing tactics, such as displaying a higher "original" price next to a lower "sale" price, to create the illusion of substantial savings. However, she contends that these original prices were fabricated and that the products were never actually sold at those higher prices.

Consumers Claim Under Armour's Pricing is Misleading

The lawsuit argues that Under Armour's pricing practices violate federal regulations that require an advertised former price to be the actual price at which the item was sold "on a regular basis for a reasonably substantial period of time."

This case claims that Under Armour’s use of inflated reference prices is a deliberate tactic to deceive consumers and manipulate their purchasing decisions. By inflating the "original" price, the company allegedly misrepresents the true value of its products and encourages consumers to buy items they might not otherwise purchase. 

"In short, the higher reference price stated alongside the selling price shift[s] the demand function outward, leading to higher average prices and thus higher margins," the lawsuit states.

Other Companies Face Similar Allegations

Under Armour is not alone in facing accusations of deceptive pricing. In recent months, several other companies have been subject to similar legal actions. 

In November 2024, Macy's was hit with a class action alleging that it used inflated reference prices to create the illusion of significant discounts. Also in November 2024, watchmaker Bulova faced similar allegations regarding inflated reference prices on its website. And in October 2024, a class action against Home Depot accused the retailer of exaggerating original prices to make discounts appear larger. 

In the Under Armour deceptive pricing class action lawsuit, Rappaport seeks to represent anyone in New York who purchased at least one product from an Under Armour factory outlet store (in-person or online) at a discount from an advertised reference price and has not received a refund or credit for their purchase.

She demands that Under Armour cease its allegedly deceptive pricing practices and provide compensation to consumers who were misled by the false discounts. The lawsuit also seeks an injunction to prevent Under Armour from continuing to engage in similar pricing practices in the future.

Case Details

• Lawsuit: Rappaport v. Under Armour, Inc.
• Case Number: 2:24-cv-07558 
• Court: U.S. District Court for the Eastern District of New York

Plaintiffs' Attorneys

• Gary F. Lynch, Todd D. Carpenter, Scott G. Braden, and Matt J. Zevin (Lynch Carpenter, LLP)

Have you shopped at Under Armour factory outlet stores? Share your experience with their pricing practices in the comments below.