Karma: Zara Hit With $5 Million USD Lawsuit That Could See Many Customers Reimbursed
Zara’s been no stranger to controversy, counting a Tuesday Bassen lawsuit among other plagiarizing claims. Now the Spanish retail giant is slapped with a $5 million USD lawsuit by Rose Devin alleging that Zara engaged in “deceptive pricing practices.”
Rose claimed to have overpaid for the three items he bought at Zara in May: “the actual euro-dollar exchange rate would have resulted in his €9.95 shirts costing approximately $11.26 each. Instead, however, Zara charged Mr. Rose $17.90 per garment, a markup of nearly 60%.”
Zara prints Euro bills rather than the dollar amount meaning the brand isn’t keeping tabs on the changing exchange rates — aka the “classic bait and switch” scheme. Here’s where the suit gets public: if approved, anyone who ever bought over-priced garments can enter the case and split the settlement amount.
Zara USA denied the allegations according to The Fashion Law:
“While we have not yet been served the complaint containing these baseless claims, we pride ourselves in our fundamental commitment to transparency and honest, ethical conduct with our valued customers. We remain focused on providing excellent customer service and high-quality fashion products at great value for our customers. We look forward to presenting our full defense in due course through the legal process.”
In response, Rose and lawyers commented:
“Zara’s response so far has been beyond bizarre and desperate. Their unlawful conduct is not up for debate, as anyone who goes into a Zara store in the United States can see with their own two eyes that Zara is pricing clothing in euros and charging consumers drastically above the lowest tag price in dollars which is illegal. U.S. laws require that a retailer charge the consumer the lowest tag price — not grossly inflated amounts using fake conversion rates. If Zara wants to double down on its duplicity, instead of acting like a responsible corporate citizen and fixing the mess of its own making, they should be prepared to face the wrath of the American consumer and the full force of the law.”
Will you be keeping up with the suit now?