If there are always 20% off coupons readily available and you never have to pay full price, does the cost without a coupon really constitute “full price” anymore, and are you really even getting a discount at all?
That’s what a California court has been asked to decide about the craft store chain Michaels.
After Michaels shopper Nea Vizcarra sued the retailer last year over what she calls its “fake prices and fake discounts,” the judge in the case has now allowed it to proceed, denying Michaels’ motion to dismiss the lawsuit.
“While there is nothing wrong with a legitimate sale,” Vizcarra’s lawsuit reads, “a fake one — that is, one with made-up regular prices, made-up discounts, and made-up expirations — is deceptive and illegal.” She argues that Michaels deceptively advertises that you can save at least 20% off its regular prices by using a coupon, but since there is always a coupon available, the 20% price is essentially the de facto “regular price” and you’re not really saving anything.