Buyers’ Remorse: Outlet Stores Under Fire

Law360, New York (September 22, 2014, 10:32 AM EDT) -- Outlet stores are at the center of the latest wave of class actions against retailers. In the past few weeks, plaintiffs have sued prominent retailers including Michael Kors, Neiman Marcus, The Gap, Saks Fifth Avenue, Levi Strauss, Nordstrom and Ralph Lauren, each of the lawsuits alleging deceptive marketing practices at retail outlet and factory store locations. The theory underlying these new lawsuits is that outlet and factory stores should be strictly limited to selling merchandise that was manufactured and suitable for sale in non-outlet retail locations. Otherwise, these lawsuits assert, consumers are misled because everyone assumes that a single product line...

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