Apparel Retailer Allegedly Fabricates Sale Prices for Designer Clothing


Apparel Expert WitnessThis case was a class action matter against a major national retailer of designer apparel relating to allegedly fraudulent sales and retail marketing practices. The apparel retailer would regularly offer discounts on clothing, which were billed as significant discounts on the list prices provided by the manufacturer and touted by the retailer as the “full price” of the item. However, the class of individuals who purchased items listed as “on sale” alleged that the sale prices were, in fact, the full list price and that the retailer had effectively fabricated the discounts it had offered over the course of several months. It became apparent that a merchandiser for the retailer had, in an attempt to increase the clothing’s public profile, advocated the strategy and had worked overtime to implement it.

Question(s) For Expert Witness

  • 1. What is your background with pricing at retail stores?
  • 2. Do you have experience working in the retail industry?

Expert Witness Response E-050861

Expert-ID: E-050861

Throughout my career as a merchandiser, I have worked closely with the outlet channel of several retailers. Pricing is always a round-table discussion and I was very much involved in those talks. The state in which this case is located is a huge market for any fashion retailer, and was the #1 outlet market during my time at Sperry and Cole Haan. I worked at the defendant company for a portion of 2014 as the Director of Women’s Merchandising for Handbags and SLGs, and their outlet strategies followed industry norms. Clothing and accessories companies can’t sell the same items in regular stores and outlets, so a lot of planning has to go into the merchandise.

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