A new lawsuit alleges that Nike is being shady with its prices at outlets, and wants the brand to pay $5 million for its "fraudulent" policies, KOIN6 reports.
The class-action suit, filed by Monika Taylor on Monday in U.S. District Court, claims that Nike "misrepresented the existence, nature, and amount of price discounts on products sold in Nike Outlet stores by purporting to offer discounts off of a false 'Suggested Retail Price.'"
Taylor's contention is that Nike makes certain product exclusively for its outlet stores and labels that product in a way that suggests it's been marked down from its original retail price, despite being produced with the sole intent of being sold at outlets.
The lawsuit says that MSRP (Manufacturer’s Suggested Retail Price) tags on these outlet-exclusive products are thus "fictional creations designed by Nike to portray false price information, create an illusion that the manufacturer and the seller are not the same parties, enable phantom markdowns and increase sales."
See the lawsuit in its entirety below.
