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July 26, 2012 / Scott Tillett

District Court to Determine if Consumer Fraud Allegations Against Retailer Jos. A. Bank Are Well-“Suited” for Class Action Litigation

On April 5, 2012, consumers James Waldron and Matthew Villani filed a class action lawsuit in New Jersey District Court on behalf of all U.S. consumers who purchased menswear from the retail store Jos. A. Bank between April 5, 2006 and the present.

The plaintiffs have brought causes of action for violation of the New Jersey Consumer Fraud Act, for Unjust Enrichment, and for Common Law Restitution.   Specifically, the plaintiffs allege that the company’s clothing is perpetually offered at “sale” prices but never returns to its “regular prices.” If this is true, then the alleged sale prices are actually the retailer’s regular prices and there is no sale at all.

The lawsuit also alleges that the retailer’s advertisements urge customers to act before the sales end, warning that the sales are available for a limited time only. This type of advertising, according to the plaintiffs, creates a false sense of urgency for consumers who believe that the clothing will return back to its originally-offered and presumably higher prices. However, according to the plaintiffs, each sale is followed by a similar sale, so the clothing never returns to its regular prices. Consumers rely upon the representations made in advertisements in choosing what products to purchase. When that choice is induced through falsehoods and misrepresentations in advertisements, businesses benefit at the expense of consumers. The plaintiffs allege that consumers would not have purchased Jos. A. Bank merchandise or would have been inclined to spend significantly less on the merchandise had they known that the sale price was actually the regular price.

If you feel that you have been the victim of consumer-related fraud or any other injustice please call Khorrami, LLP for a free, private consultation.

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