On Jan. 28, a New Jersey federal judge dismissed an attempt at a class action lawsuit against Jos. A. Bank that charged the clothing retailer’s constant sales were “misleading to customers.”
The lawsuit, filed April 5 by plaintiffs James Waldron and Matthew Villani, alleged that Jos. A. Bank misled customers by putting its merchandise “perpetually ‘on sale.’” It claimed the company’s advertising practices violated the New Jersey Consumer Fraud Act and constituted unjust enrichment.
But Judge Dennis M. Cavanaugh ruled that to be seen as consumer fraud, a retailer’s practices must “stand outside the norm of reasonable business practices.” And constant sales, he said, didn’t fit that bill.
“Plaintiffs yet have not provided any facts which demonstrate that the ‘sale’ price offered is identical to the true regular price of the merchandise and thus a misrepresentation,” the judge wrote.
He further argued that the plaintiffs have not necessarily suffered an injury as a result of the retailer’s sales, as the product was not “defective” and that they got what they were promised. “Nor do Plaintiffs allege that they were dissatisfied with the product, demanded a refund, or had their refund refused,” he added.
The lawsuit was dismissed with prejudice. Plaintiff lawyers could not be reached for comment at press time.