Nike’s Discount Pricing Is Bogus, Says Class Action Plaintiff

Nike’s  claim that its outlet stores are selling merchandise at a discount from the “manufacturer’s suggested retail price” has become a bone of contention in a putative class action filed by a California resident in federal court in Oregon. According to the plaintiff, the labels and suggested retail price listed on Nike outlet products are “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.” The complaint maintains that the items in question are sold exclusively at Nike outlets and are never sold or “suggested” to be sold anywhere else. The suit alleges violation of California consumer protection and competition law, as well as the Federal Trade Commission Act, and maintains the FCC Act “explicitly describes this fictitious pricing scheme employed at Nike Outlets as deceptive.”